910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Council Chambers
Mayor Duncan
Mayor Pro Tem Knoblock
Councilmember Cabral
Councilmember Enmeier
Councilmember James
5:00 p.m. - Business Meeting Part 1
6:00 p.m. - Closed Session
7:00 p.m. - Business Meeting Part 2
CITY OF SAN CLEMENTE
Tuesday, December 20, 2022
City Council
Regular Meeting Agenda
Information concerning City Council Meeting protocols and procedures is contained at the end of this agenda.
RULES FOR ADDRESSING COUNCIL
• Members of the public may address the City Council on matters within the jurisdiction of the City of San Clemente.
• If you wish to address Council, please complete one of the blue speaker cards located at the entrance to the Council Chambers and turn it in to the City Clerk or Deputy City Clerk. • Persons wishing to address Council concerning an agendized item will be invited to address Council during the time that Council is considering that particular agenda item.
Persons wishing to address Council concerning a non-agendized issue will be invited to address Council during the “Oral Communications” portion of the meeting. • When invited by the Mayor, please step to the podium, and if you wish, state your name and the City in which you reside, and make your presentation. Please limit your presentation to three minutes.
MISSION STATEMENT
The City of San Clemente, in partnership with the community we serve, will foster a tradition dedicated to:
Maintaining a safe, healthy atmosphere in which to live, work and play; Guiding development to ensure responsible growth while preserving and enhancing our village character, unique environment and natural amenities; Providing for the City’s long-term stability through promotion of economic vitality and diversity…
Resulting in a balanced community committed to protecting what is valued today while meeting tomorrow’s needs.
1 City Council Regular Meeting Agenda December 20, 2022 BUSINESS MEETING PART 1 (5:00 P.M.)
Holiday Serenade - Las Palmas Elementary and Concordia Elementary School Choirs
Holiday serenade by the Las Palmas Elementary and Concordia Elementary School Choirs, under the direction of Sharon Evans.
CALL TO ORDER
INVOCATION – Senior Pastor Holland Davis, Calvary Chapel San Clemente
PLEDGE OF ALLEGIANCE
ROLL CALL
1. Motion waiving reading in full of all Resolutions and Ordinances
2. Consideration of agendizing items requiring immediate action Any items agendized will be considered under New Business, unless otherwise determined by a majority vote of the City Council.
3. Oral Communications (Part 1)
Members of the audience who wish to address Council on matters that are within the jurisdiction of the City of San Clemente, but not separately listed on the agenda, may do so during the Oral Communications portion of the meeting. Speakers may address Council once during either Oral Communications Part 1 or Part 2. A total time limitation of 30 minutes is allocated for Oral Communications Part 1, with each speaker being allotted 3 minutes in which to give his or her presentation. Speaker order is determined by the order in which speaker cards are provided to the City Clerk or Deputy City Clerk at the meeting. Speakers that cannot be accommodated during Oral Communications Part 1 will be invited to address Council during Oral Communications Part 2, which appears on this agenda as Item No. 12. When invited by the Mayor, please step to the podium, and if you wish, state your name and the City in which you reside, and make your presentation. Subject to very limited exceptions, Council is not permitted to discuss or take action on items that do not appear on the agenda.
4. Consent Calendar
All items listed on the Consent Calendar are considered to be routine and will be enacted by one motion without discussion unless Council, Staff, or the public requests removal of an item for separate discussion and action.
2 City Council Regular Meeting Agenda December 20, 2022 A. City Council Minutes
Staff Recommendation:
(1a.) RESPONSE TO POINT OF ORDER DATED DECEMBER 14, 2022.
Staff Recommendation
1. Recommend that the City Council deny the appeal and uphold the point of order decision from the meeting of December 6, 2022. (1b.) APPROVE THE CITY COUNCIL REGULAR AND SPECIAL MEETING MINUTES OF DECEMBER 6, 2022.
(2) APPROVE THE CITY COUNCIL SPECIAL MEETING MINUTES OF DECEMBER 13, 2022.
(3) APPROVE THE CITY COUNCIL SPECIAL MEETING MINUTES OF DECEMBER 15, 2022.
B. Commission/Committee Minutes
Staff Recommendation:
Receive and file the following:
(1) BEACHES, PARKS AND RECREATION COMMISSION REGULAR
MEETING MINUTES OF OCTOBER 11, 2022.
(2) DESIGN REVIEW SUBCOMMITTEE REGULAR MEETING MINUTES
OF OCTOBER 26, 2022
(3) DESIGN REVIEW SUBCOMMITTEE REGULAR MEETING MINUTES
OF NOVEMBER 9, 2022
(4) PLANNING COMMISSION REGULAR MEETING MINUTES OF
DECEMBER 7, 2022.
3 City Council Regular Meeting Agenda December 20, 2022 C. Warrant Register
(1) APPROVE WIRE TRANSFER NOS.
2756 THROUGH 2765 AND WARRANT NOS.
585060 THROUGH 585187, PAID ON
12-2-22, IN THE AMOUNT OF $2,447,393.66
(2) APPROVE WIRE TRANSFER NOS.
2766 THROUGH 2767 AND WARRANT NOS.
585188 THROUGH 585316, PAID ON
12-9-22, IN THE AMOUNT OF $6,060,492.47
(3) APPROVE WIRE TRANSFER NOS.
2768 THROUGH 2771 AND WARRANT NOS.
585317 THROUGH 585453, PAID ON
12-16-22, IN THE AMOUNT OF $1,797,256.16
TOTAL WARRANT REGISTER……………………………$10,305,142.29
Payroll Register
Warrant Nos. 891 and Automatic
Deposit Advises 82472
through 82737, for the period
11-14-22 through 11-27-22, paid
on 12-2-22, in the amount of………..……..….......………….……..$537,383.76 Automatic Deposit Advises 82738
through 83005, for the period
11-28-22 through 12-11-22, paid
on 12-16-22, in the amount of………..……..….......……………...….$440,359.16 TOTAL PAYROLL REGISTER……………………………………….….$977,742.92
D. CITY OF SAN CLEMENTE FISCAL YEAR 2021-2022, MEASURE M2
EXPENDITURE REPORT
Staff Recommendation
Adopt Resolution No. 22-47 entitled A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SAN CLEMENTE, CALIFORNIA, TO ADOPT THE FISCAL YEAR 2021-2022 MEASURE M2 EXPENDITURE REPORT FOR THE CITY OF SAN CLEMENTE.
4 City Council Regular Meeting Agenda December 20, 2022 E. ORDINANCE NOS. 1740, 1741, 1742, 1743, 1744 AND 1745 (SECOND READING) - IMPLEMENTING THE CITY’S SIXTH CYCLE HOUSING
ELEMENT
Staff Recommendation
1. Adopt Ordinance No. 1740 entitled AN ORDINANCE OF THE CITY
COUNCIL OF SAN CLEMENTE, CALIFORNIA AMENDING SECTION
17.24.070 OF THE SAN CLEMENTE MUNICIPAL CODE REGARDING
DENSITY BONUSES AND OTHER AFFORDABLE HOUSING
INCENTIVES REQUIRED BY STATE LAW AND FINDING THE ACTION
TO BE EXEMPT FROM CALIFORNIA ENVIRONMENTAL QUALITY ACT
(CEQA).
2. Adopt Ordinance No. 1741 entitled AN ORDINANCE OF THE CITY
COUNCIL OF SAN CLEMENTE, CALIFORNIA AMENDING SECTION
17.56.100 OF THE SAN CLEMENTE MUNICIPAL CODE TO COMPLY
WITH ASSEMBLY BILL 139 REGARDING PARKING REQUIREMENTS
FOR EMERGENCY SHELTERS AND FINDING THE ORDINANCE NOT
SUBJECT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
(CEQA).
3. Adopt Ordinance No. 1742 entitled AN ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA AMENDING SECTION 17.28.270 OF THE SAN CLEMENTE MUNICIPAL CODE
GOVERNING ACCESSORY DWELLING UNITS AND JUNIOR
ACCESSORY DWELLING UNITS TO COMPLY WITH CHANGES IN
STATE LAW AND FINDING THE ACTION TO BE EXEMPT FROM CEQA (CEQA).
4. Adopt Ordinance No. 1743 entitled AN ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA AMENDING
VARIOUS PROVISIONS OF THE SAN CLEMENTE MUNICIPAL CODE TO
ENSURE CONSISTENCY WITH STATE LAW REGARDING LOW
BARRIER NAVIGATION CENTERS AND FINDING THE ACTION TO BE
EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
(CEQA).
5. Adopt Ordinance No. 1744 entitled AN ORDINANCE OF THE CITY
COUNCIL OF SAN CLEMENTE, CALIFORNIA AMENDING VARIOUS
PROVISIONS OF THE SAN CLEMENTE MUNICIPAL CODE TO ENSURE
CONSISTENCY WITH STATE LAW REGARDING SUPPORTIVE AND
TRANSITIONAL HOUSING AND FINDING THE ACTION TO BE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA).
5 City Council Regular Meeting Agenda December 20, 2022
6. Adopt Ordinance No. 1745 entitled AN ORDINANCE OF THE CITY
COUNCIL OF SAN CLEMENTE, CALIFORNIA AMENDING VARIOUS
PROVISIONS OF THE SAN CLEMENTE MUNICIPAL CODE REGARDING
RESIDENTIAL CARE FACILITIES AND FINDING THE ACTION TO BE
EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
(CEQA).
F. ADOPTION OF CITY INVESTMENT POLICY 202-1
Staff Recommendation
Adopt Investment Policy 202-1, effective December 21, 2022.
G. RATIFICATION OF EMERGENCY PURCHASES AND CONSTRUCTION
CONTRACTS FOR CYPRUS SHORE SEWER LINING
Staff Recommendation
1. Make a finding that an emergency exists due to the potential failure of an existing sewer line and that the situation requires immediate action to prevent or mitigate impairment to property and public services, that might otherwise occur if required to incur delays attributed to the typical engineering design and public competitive bidding process.
2. Declare that the public interest and necessity demand the immediate expenditure of public funds to safeguard public health.
3. Approve a supplemental appropriation in the amount of $127,000 to Account No. 054-476-45300-000-12209 from the Sewer Fund Depreciation Reserve.
4. Ratify a Construction Contract with Sancon Technologies, Inc. providing for Cyprus Shore Emergency Sewer Lining, in the amount of $80,940.
5. Ratify a Construction Contract with Xylem Dewatering Solutions, Inc. on a time and materials basis for up to $18,850 for Cyprus Shore Emergency Sewer Lining.
H. CONTRACT AMENDMENT - MARINE SAFETY HEADQUARTERS
RELOCATION STUDY
Staff Recommendation
Approve, and authorize the Public Works Director/City Engineer to execute, Amendment No. 1 to Contract No. C21-24, by and between the City of San Clemente and HMC Architects, providing for the Marine Safety Headquarters Relocation Study. This amendment increases the contract amount from $87,500 to $122,500 (an increase of $35,000).
6 City Council Regular Meeting Agenda December 20, 2022 I. PROPOSED MODIFICATIONS TO CITY COUNCIL AGENDA TEMPLATE Staff Recommendation
1. Approve the agenda template changes as outlined in Attachment 1 of the Administrative Report, dated December 20, 2022, and on file with the City Clerk.
2. Adopt Resolution No. 22-48 entitled A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA,
ESTABLISHING THE DATE, TIME AND LOCATION OF CITY COUNCIL MEETINGS AND RESCINDING RESOLUTION NO. 22-10.
5. Reports
A. Commissions and Committees
B. City Manager
Update on trains idling at T-Street.
C. City Attorney
D. Council Members
(1) UPDATE TO COUNCIL APPOINTEES TO REGIONAL COMMITTEES,
COMMISSIONS AND BOARDS AND CITY COUNCIL
SUBCOMMITTEES.
Staff Recommendation
1. Update Councilmember appointments to various regional committees, commissions and boards.
2. Determine the Councilmember who will serve as the City’s representative to the Orange County Fire Authority Board of Directors and adopt Resolution No. 22-49 entitled A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA,
DESIGNATING AND APPOINTING ITS REPRESENTATIVE TO THE
ORANGE COUNTY FIRE AUTHORITY’S BOARD OF DIRECTORS,
with the direction that the name of the City’s new Director be inserted.
3. Determine whether or not to establish a citizen’s subcommittee to further analyze the feasibility of an amphitheater. If it is determined to establish a citizen’s subcommittee, each councilmember will appoint a citizen, and notify the City Clerk of that appointment.
4. Update Councilmember appointments to various City Council subcommittees.
7 City Council Regular Meeting Agenda December 20, 2022 (2) ESTABLISHMENT OF COUNCIL MEETING SCHEDULE FOR 2023
AND EARLY 2024
Staff Recommendation
1. Council cancel its meetings of July 4, 2023 and August 1, 2023 to accommodate Council and staff vacations.
2. Schedule the Long Term Financial Plan Meeting for February 28, 2023 at 4:00 p.m.
3. Schedule the Budget Workshop for May 23, 2023 at 4:00 p.m.
4. Cancel the City Council meeting of January 2, 2024.
E. Council Subcommittee Updates
CLOSED SESSION (6:00 P.M.)
A. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Existing litigation pursuant to Government Code section 54956.9(d)(1) Number of Cases: 1
Case Name: City of San Clemente v. Foothill/Eastern Transportation Corridor Agency, et al.
Riverside Superior Court Consolidated Case No.: RIC 1800232 CA Court of Appeal Case No.: E078045 (Fourth Appellate District, Division 2) B. CONFERENCE WITH LEGAL COUNSEL-ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code section 54956.9(d)(2)
Number of potential cases: 1
C. PUBLIC EMPLOYEE APPOINTMENT
Pursuant to Government Code Section 54957
Title: Chief of Police Services (advisory to Sheriff)
BUSINESS MEETING PART 2 (7:00 P.M.)
6. Closed Session Report - City Attorney
7. Special Presentations
A. Recognition of Senator Bates
Presentation of commendation to Senator Bates for her unwavering dedication to the City of San Clemente and its residents.
B. November Update on the Homeless Issue
C. Fiscal State of the City - Fiscal Year Ending June 30, 2022 and FY 2022 4th Quarter Financial Report and FY 2023 1st Quarter Financial Report
8 City Council Regular Meeting Agenda December 20, 2022
9 City Council Regular Meeting Agenda December 20, 2022
8. Public Hearings
The Public Hearing process includes a staff presentation, a presentation by the applicant not to exceed ten (10) minutes, and public testimony (not to exceed three minutes per speaker). Following closure of the Public Hearing, the City Council will respond to questions raised during the hearing, discuss the issues, and act upon the matter by motion.
A. CONTINUANCE OF APPEAL OF MINOR CONDITIONAL USE PERMIT 22-197, PRIMO FOODS BEER AND WINE, 2801 S. EL CAMINO REAL Scheduled to be heard at 7:30 p.m.
Public Hearing to consider a City Council intitiated appeal of the Zoning Administrator's approval of Minor Conditional Use Permit 22-197, Primo Foods Beer and Wine, 2801 S. El Camino Real, which approved beer and wine sales at Primo Foods Market and Deli for off-site consumption, with hours of operation from 8:00 a.m. to 8:00 p.m. daily. The project does not propose changes to the existing market.
Staff Recommendation
Continue the Public Hearing to the Regular City Council meeting of February 7, 2023, per the request of the applicant.
B. INTRODUCTION OF AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA AMENDING CHAPTER 16.50
(STATE-MANDATED SUBDIVISIONS) AND CHAPTER 17.86
(STATE-MANDATED RESIDENTIAL PROJECTS) OF THE SAN CLEMENTE
MUNICIPAL CODE TO ESTABLISH OBJECTIVE DESIGN, DEVELOPMENT
AND SUBDIVISION STANDARDS REGULATING URBAN LOT SPLIT AND
TWO-UNIT PROJECTS IN ACCORDANCE WITH CALIFORNIA SENATE BILL 9; (PROJECT NO. ZONING AMENDMENT 22-395).
Scheduled to be heard at 7:45 p.m.
Public Hearing to consider Amendments to Chapter 16.50 (State-Mandated Subdivisions) and Chapter 17.86 (State-Mandated Residential Projects) of the San Clemente Municipal Code to establish objective design standards, development and subdivision standards regulating urban lot splits and two-unit housing projects in accordance with California Senate Bill 9 (SB 9).
Staff Recommendation
Introduce Ordinance No. 1748 entitled AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE AMENDING CHAPTERS 16.50 AND 17.86 AND AMENDING SECTION 17.52.020 TO THE SAN CLEMENTE
MUNICIPAL CODE TO REGULATE URBAN LOT SPLITS AND TWO-UNIT
10 City Council Regular Meeting Agenda December 20, 2022 PROJECTS UNDER SB 9; AND FINDING THE ACTION TO BE EXEMPT FROM CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA).
9. Unfinished Business
A. CONSIDERATION OF TRAFFIC CALMING IN THE COAST NEIGHBORHOOD - CALLE FRONTERA, CALLE JUAREZ, AND CALLE VALLARTA
Staff and the Planning Commission Recommendation
1. Install electronic speed feedback signs, advisory speed signs and edge lines as illustrated in Attachment 5 of the Administrative Report, dated December 20, 2022, and on file with the City Clerk.
2. Appropriate the required funds from the Traffic Calming Project, CIP No. 39807.
10. New Business
A. PROJECT PARTNERSHIP AGREEMENT - U.S. ARMY CORPS OF
ENGINEERS FOR THE SAN CLEMENTE SHORELINE PROJECT
Staff Recommendation
Approve, and authorize the Interim City Manager to execute, Contract No.
C22-70, a project partnership agreement by and between the City of San Clemente and the U.S. Army Corps of Engineers for the San Clemente Shoreline Project.
B. STAY OF ACTION PENDING COUNCIL APPEAL REGARDING REVOCATION
OF CONLEY ADMINISTRATIVE ENCROACHMENT PERMIT SUMMARY
(Agendized at the December 6, 2022 City Council Meeting by Council.) Staff Recommendation
Receive and file the Administrative Report, dated December 20, 2022, and on file with the City Clerk.
C. RECONSIDERATION OF THE CONTRACT AWARD FOR THE DESIGN OF RICHARD T. STEED MEMORIAL SPORTS PARK PICKLEBALL COURTS. (Agendized at the December 6, 2022 City Council Meeting by Councilmember James with the support of, Mayor Duncan and Mayor Pro Tem Knoblock.) Staff Recommendation
City Council provide direction on the contract award for the design of pickleball courts at Richard T. Steed Memorial Sports Park.
11 City Council Regular Meeting Agenda December 20, 2022 D. WEEKEND TROLLEY SERVICE EXTENSION
Staff Recommendation
1. Approve, and authorize the City Manager to execute, Amendment No. 2 to Contract No. C19-35, by and between the City of San Clemente and LAZ Parking, extending the term of the contract through December 31, 2023 and providing for additional trolley service days (Saturdays and Sundays) during the months of January through March 2023.
2. Authorize a supplemental appropriation of $59,230 to Account No. 021-808- 43690 (Other Professional Services) for Trolley operations on the downtown (Red Line) route on Saturdays. Sundays and two holidays in January through March of 2023 and approve a funding transfer from the General Fund unassigned fund balance in the amount of $59, 230 to the Local Transit Fund (Account No. 021-000-39204) OR
Authorize a supplemental appropriation of $93,230 to Account No. 021-808- 43690 (Other Professional Services) for Trolley operations between January and March 2023 with three trolleys on the red line and two trolleys designated for a pilot route as directed by the City Council and approve a funding transfer from the General Fund unassigned fund balance in the amount of $93,230 to the Local Transit Fund (Account No. 021-000-39204.
3. Direct staff to pursue a scope change request through OCTA’s semiannual review process to seek approval for any desired changes to the seasonal schedule of the Trolley. (OCTA has already approved extended weekend service in the months of April, May, and October-December for 2023. OCTA has not yet reviewed or approved any expanded service beyond 2023.)
11. Reports (continued from Business Meeting Part 1)
A. Commissions and Committees
B. City Manager
Update on trains idling at T-Street.
C. City Attorney
D. Council Members
(1) UPDATE TO COUNCIL APPOINTEES TO REGIONAL COMMITTEES,
COMMISSIONS AND BOARDS AND CITY COUNCIL
SUBCOMMITTEES.
Staff Recommendation
1. Update Councilmember appointments to various regional committees, commissions and boards.
12 City Council Regular Meeting Agenda December 20, 2022
2. Determine the Councilmember who will serve as the City’s representative to the Orange County Fire Authority Board of Directors and adopt Resolution 22-49 entitled A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA,
DESIGNATING AND APPOINTING ITS REPRESENTATIVE TO THE
ORANGE COUNTY FIRE AUTHORITY’S BOARD OF DIRECTORS,
with the direction that the name of the City’s new Director be inserted.
3. Determine whether or not to establish a citizen’s subcommittee to further analyze the feasibility of an amphitheater. If it is determined to establish a citizen’s subcommittee, each Councilmember will appoint a citizen, and notify the City Clerk of that appointment.
4. Update Councilmember appointments to various City Council subcommittees.
(2) ESTABLISHMENT OF COUNCIL MEETING SCHEDULE FOR 2023
AND EARLY 2024
Staff Recommendation
1. Council cancel its meetings of July 4, 2023 and August 1, 2023 to accommodate Council and staff vacations.
2. Schedule the Long Term Financial Plan Meeting for February 28, 2023 at 4:00 p.m.
3. Schedule the Budget Workshop for May 23, 2023 at 4:00 p.m.
4. Cancel the City Council meeting of January 2, 2024.
E. Council Subcommittee Updates
12. Oral Communications (Part 2)
Members of the audience who wish to address Council on matters that are within the jurisdiction of the City of San Clemente, but not separately listed on the agenda, may do so during the Oral Communications portion of the meeting. When invited by the Mayor, please step to the podium, and if you wish, state your name and the City in which you reside, and make your presentation, not to exceed three minutes. Subject to very limited exceptions, Council is not permitted to discuss or take action on items that do not appear on the agenda.
13 City Council Regular Meeting Agenda December 20, 2022
13. Adjournment
The next Regular City Council Meeting is scheduled to take place on January 17, 2023.
The meeting will take place in the City Council Chambers, located at 910 Calle Negocio, 2nd Floor, San Clemente.
Note: The meeting of January 3, 2023 was previously cancelled.
14 City Council Regular Meeting Agenda December 20, 2022
CITY COUNCIL MEETING PROCEDURES
PRESENTATION OF WRITTEN MATERIALS TO COUNCIL
In order to ensure that Councilmembers have adequate time to consider written materials concerning agenda items, it is strongly recommended that such materials be submitted to the City Clerk by noon the date preceding the Council meeting.
MEETINGS RECORDED AND TELEVISED
City Council meetings are broadcast live and are replayed periodically on Cox Communications Local Access Channel 854. Meetings are also available for live-stream or post meeting viewing from the City’s website.
Meetings are also recorded via audio CD and/or DVD and retained as a City record in accordance with the City’s records retention schedule.
USE OF ELECTRONIC VISUAL AIDS BY PUBLIC AT MEETINGS
To allow staff adequate time to confirm software compatibility, individuals wishing to utilize electronic visual aids to supplement their oral presentations at the meeting, must submit the electronic files to the City Clerk by no later than 12:00 p.m. on the day of the meeting. Only compatible electronic formats will be permitted to be used on City audio/visual computer equipment. Staff makes no guarantee that such material will be compatible, but will use its best efforts to accommodate the request.
LENGTH OF MEETINGS
At 11:00 p.m., the City Council will determine which of the remaining agenda items can be considered and acted upon at this meeting and will continue all other agenda items to a future meeting.
AMERICANS WITH DISABILITIES ACT
Pursuant to the Americans with Disabilities Act, persons with a disability who require a disability-related modification or accommodation in order to participate in a meeting, including auxiliary aids or services, may request such modification or accommodation from the City Clerk at (949) 361-8200. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to assure accessibility to the meeting.
COMMUNICATION DEVICES
To minimize meeting distractions and sound system interference, please be sure all personal communication devices are turned off or on silent mode.
MEETING SCHEDULE
Regular Council Meetings are held on the first and third Tuesdays of each month in the Council Chambers, located at 910 Calle Negocio, 2nd floor, San Clemente. Part 1 of the Business Meeting will begin at 5:00 p.m. and Closed Session begins at 6:00 p.m. Part 2 of the Business Meeting will commence at 7:00 p.m. Additional meetings of the City Council may be called as needed.
AGENDAS, ADMINISTRATIVE REPORTS AND SUPPLEMENTAL WRITTEN MATERIALS Agendas and Administrative Reports are available for review and/or copying at the City Clerk’s Department as soon as agendas are posted, by accessing the City’s website at www.san-clemente.org. An “Inspection Copy” of agenda materials is also located at the entrance to the Council Chambers during meetings for public review. All written material distributed to a majority of the Council after the original agenda packet was distributed is available for public inspection in the City Clerk’s Department, located at 910 Calle Negocio, San Clemente, during normal business hours.
The City Clerk’s Department offers an agenda packet subscription service free of charge. If you wish to receive email copies of City Council agendas, which include hyperlinks to staff reports and other back-up material, register at http://san-clemente.org/enotification.
15 AGENDA REPORT
CITY OF SAN CLEMENTE
City Council Meeting
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Meeting Date: 12/20/2022 Agenda Item: (1a.)
Subject:
Response to Point of Order dated December 14, 2022.
CITY OF SAN CLEMENTE Page 1 of 1 Printed on 12/16/2022
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Scott C. Smith
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55452.01100\40906769.2
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Memorandum
To: Honorable Mayor and City Council
From: Interim City Manager Sean Joyce and City Attorney Scott Smith Date: December 14, 2022
Re: Point of Order Regarding Nomination and Election of Mayor Pro Tem
SUMMARY
The City Council elected a new Mayor and Mayor Pro Tem at its December 6, 2023 meeting. The following day, Councilmember Gene James filed a point of order on the election process for the Mayor Pro Tem (the “appeal”). The City Council Policy detailed below allows Councilmembers to raise and resolve points of order at any time.
This point of order raises the question of whether elections for Council offices should be treated as (1) a “round” of voting, with all nominees in consideration until one nominee receives a majority of Council votes (the procedure followed) or (2) a series of stand-alone motions and substitute motions (the procedure advocated in the appeal). After reviewing the meeting proceedings and the guidance provided in the Council Policy and Rosenberg’s Rules of Order and analogous rules on this subject, the City Attorney recommends that the Council affirm the former interpretation, as used on the 6th. The Council, however, has the option to apply the latter interpretation, but in doing that should then vote on the nominees in reverse order with the second nomination standing as a substitute motion on the first.
DISCUSSION
Statement of Facts
On December 6, 2022, the City Council considered the election of its officers, resulting in the selection of Mayor Duncan and Mayor Pro Tem Knoblock under the procedure recommended and utilized for the nominations and election. After the Council meeting, Councilmember James raised the following point of order regarding the election process of the Mayor Pro Tem:
17 55452.01100\40906769.2
- 2 -
“Under Rosenberg’s Rules a vote of 2 YES. 1 NO and 2 Abstain passes …we had that vote last on Victor Cabral. Unfortunately, that was not the ruling. I implore you to review Rosenberg’s. [We] need to cure this immediately.”
In essence, this appeal asserts that the election was not a round of voting on a series of nominees, but rather a vote on a stand-alone motion to elect Councilmember Cabral as Mayor Pro Tem.
Councilmember Cabral received two votes in favor (Cabral and James), one vote in opposition (Duncan), and two abstentions (Knoblock and Enmeier) – i.e., a 2-1-2 vote. Under this stand-alone motion theory, the appeal reasons that Councilmember Cabral received a majority of the votes cast in a motion to elect him, and thus, was elected as Mayor Pro Tem.
Points of Order
Points of Order are governed by Council Policy 1201-11 (the “Policy”).The Policy provides that the Mayor, with assistance from the City Attorney, is designated as the parliamentarian for City Council meetings.1 Points of order may be raised at any time by City Councilmembers, which shall then be considered by the Mayor. The City Council may override any parliamentary decision of the Mayor with a majority vote. (Section 4.1.2.)
Here, because the point of order was raised in this appeal after the meeting, this matter is being brought back to the Council post facto, using the process for resolving points of order from the public. As such, it is presented to the Council for consideration at the Council meeting where the previous meeting’s minutes are considered. At this time, the Mayor and Council can review the point of order raised and “determine whether it warrants scheduling and noticing of that item for reconsideration.” (Id.) Because Section 4.2.2 of Policy 1201-11 provides that “[t]he Mayor and Mayor Pro Tempore shall serve a one-year term at the pleasure of the Council majority” (emphasis added), the Council is not bound by a reconsideration process; it can elect new officers at any time (subject to public notice) and can skip the step of reconsideration to proceed directly to a new vote.
The Policy provides that “no ordinance, resolution, proceeding or other action of the City Council shall be invalidated or the legality thereof otherwise affected by the failure or omission to observe or following such rules.” (Section 4.1.1.) Therefore, even with deviations from the parliamentary procedures, the Council’s actions are legitimate and enforceable unless reversed by Council.
Election Procedure – Open Nominations
This section describes the procedure applied to the December 6th elections.
State law prescribes no particular method for Council’s election of its officers. Government Code section 36801 simply grants the City Council the authority to select the Mayor and Mayor Pro
1 The City Clerk stood in for the Mayor in this instance. 18 55452.01100\40906769.2
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Tem. City Council Policy 1201-11 provides that Rosenberg’s Rules of Order shall govern on all matters pertaining to parliamentary procedure. (Section 4.1.1.) The starting point for Rosenberg’s Rules is motions and votes on motions; motions are carried by a majority of those voting. (See below.) Rosenberg’s contains some additional, minimal guidance on the specific issue of parliamentary procedures for nominating and electing officers (i.e., the Mayor and Mayor Pro Tem):
“Motion to close nominations. When choosing officers of the body (such as the chair), nominations are in order either from a nominating committee or from the floor of the body. A motion to close nominations effectively cuts off the right of the minority to nominate officers and it requires a two-thirds vote to pass.” (Emphasis added.)
This passage suggested to the City Attorney that Rosenberg’s contemplates a system of electing officers where all nominees are simultaneously in play (not just the first one nominated) until one nominee receives a majority of votes. But unfortunately, Rosenberg’s lacks guidance on what to do after that.
In the City Attorney’s experience, and in the experience of BB&K’s Director of Election Services, agencies traditionally use Robert’s Rules of Order to supplement these election procedures where both Rosenberg’s Rules and local policy are silent. Robert’s’ procedure of nominating and selecting officers can be summarized as follows: The “vita-voce” method of nomination is an “open nomination” solely by and from within the membership of the presently-seated board.
Nominations cannot be accepted from members of the public. No “second” is required for nomination, although sometimes members will second a nomination to indicate endorsement.
After the nomination period, a motion to close the nomination period may be made and seconded and a roll-call vote then ensues, which requires a 2/3 majority of the body.
Nominees are voted on in the order in which they are nominated (note that this is a mere roll-call vote). As soon as one of the nominees receives a vote of the majority of members participating in that round of voting, the chair then declares that person elected to that respective office, and no vote is taken on the remaining nominee(s). When a nominee does not secure the majority votes necessary, the next nominee is voted upon. This procedure continues in succeeding rounds of voting until a nominee receives votes from a majority of the body participating.
Robert’s notes that in connection with this process, members of the body may vote in connection with multiple nominees, voting “yes” for their candidate and “no” or abstaining on the others. (Robert’s Rules of Order, Sec. 46.) So, for example, if a member supports Candidate B, that member might vote against Candidate A or abstain in the vote on Candidate A, then later vote in favor of Candidate B. The intent of their “no” vote or abstention on Candidate A can’t be ascertained until the vote on all nominees is completed or until one nominee receives votes from a majority of the members thus mooting the need to vote on the remaining nominees. A person 19 55452.01100\40906769.2
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may vote twice: once against A, then for B. A person may also abstain on A then vote for B. Their vote is not “spent” or over with the “no” or abstention on any candidate until the election on nominees plays out.
Under this interpretation of Rosenberg’s with the overlay of Robert’s (via the Rosenberg’s reference to multiple nominees), the Council correctly voted on all nominees on December 6th, voting and tallying votes until the second nominee (Knoblock) received votes from a majority of the Council.2
Election Procedure – Simple Motions
This second section describes the alternative procedure proposed in the appeal of the point of order.
The appeal argues – in contrast to the parliamentary call made at the meeting and the analysis above – that the Council faced a simple motion to elect Councilmember Cabral as Mayor Pro Tem, which should have been considered alone. The 2-1-2 vote should have been considered as a successful outcome of the stand-alone motion that passed with the support of a majority of those voting on the motion. Rosenberg’s Rules provide that when the rules of the body are silent on which method, the default rule is that the body counts all votes that are “present and voting.” So, a 2-1-2 vote would have been sufficient. Under the “present and voting” method, members present are counted for purposes of determining a quorum, but are not considered in the motion itself.
Therefore, in a traditional motion that does not require a majority of the body, a 2-1-2 (two in favor, one opposed, and two abstentions) vote on a motion would result on its passage.
On this point, the appeal is technically correct. However, this interpretation does not acknowledge the unique status of “no” and abstention votes early in voting rounds, i.e., that someone wishing to vote for a later-nominated candidate has not really cast their vote until their candidate is called.
It also ignores Rosenberg’s reference to multiple nominees and the potential need to close those nominations.
It is possible that the “no” and abstention voters in this election were never going to vote (and they might have been confused or induced to vote by the City Attorney’s assertion at the meeting that a majority of the body’s vote was required). Nevertheless, the Council couldn’t have known this without proceeding to the vote on the second candidate to see their response to his nomination.
Finally, applying this “simple motion” interpretation to the Mayor Pro Tem election does not – in itself – resolve this matter. A pure motion/second process under Rosenberg’s would require treatment of Councilmember Knoblock’s nomination as a substitute motion. Rosenberg’s provide that when there are multiple motions on the floor (after motions and seconds), the first vote should proceed on the last motion made. If that substitute motion passes then no vote is taken on the first motion. Therefore, under the appeal’s interpretation of Council parliamentary procedures, the Council should have voted on Mayor Pro Tem Knoblock’s nomination first. If that had still
2 The Council employed this same process for the election of Mayor. 20 55452.01100\40906769.2
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resulted in three votes, the first motion on Councilmember Cabral’s nomination would have been moot. Thus, even if considering the simple motion approach, with the same alignment of votes, it might logically be assumed that Mayor Pro Tem Knoblock would have been elected.
COUNCIL OPTIONS
As noted above, the Policy provides that the Council will review the point of order raised on appeal and determine whether it warrants scheduling and noticing the underlying action for reconsideration.
Should the Council wish to reverse the decision on the point of order, it could do so, then skip a vote on reconsideration by scheduling a new vote subject to the replacement procedure. This is possible because the Council officers serve “at its pleasure.” If the Council reverses this procedural call, it can agendize a new vote on Mayor Pro Tem at the next Council meeting (with just a consensus of two).
RECOMMENDATION
We recommend that the City Council deny the appeal and uphold the point of order decision from the meeting on December 6th.
In the alternative, the Council could remove this item from the consent calendar, uphold the appeal by reversing the point of order decision, and agendize the election of Mayor Pro Tem for a future Council meeting.
21 AGENDA REPORT
CITY OF SAN CLEMENTE
City Council Meeting
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Meeting Date: 12/20/2022 Agenda Item: (1b.)
Subject:
APPROVE THE CITY COUNCIL REGULAR AND SPECIAL MEETING MINUTES OF DECEMBER 6, 2022.
CITY OF SAN CLEMENTE Page 1 of 1 Printed on 12/16/2022
powered by Legistar™ 22
CITY OF SAN CLEMENTE
Tuesday, December 6, 2022 5:00 PM
City Council
Regular and Special Meeting Minutes
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Council Chambers
5:00 p.m. - Business Meeting Part 1
6:00 p.m. - Special Meeting
7:00 p.m. - Business Meeting Part 2
Mayor Duncan
Mayor Pro Tem Knoblock
Councilmember Cabral
Councilmember Enmeier
Councilmember James
These minutes reflect the order in which items appeared on the meeting agenda and do not necessarily reflect the order in which items were actually considered.
A Regular and Special Meeting of the San Clemente City Council was called to order by Mayor James on December 6, 2022 at 5:00 p.m. in the San Clemente City Council Chambers, located at 910 Calle Negocio, 2nd Floor, San Clemente.
PRESENT:
ABSENT:
Duncan, Knoblock, Ward, and Mayor James
Ferguson
STAFF PRESENT: Sean Joyce, Interim City Manager; Scott Smith, City Attorney; Laura Campagnolo, City Clerk; Megan Jimenez, Deputy City Clerk BUSINESS MEETING PART 1
HOLIDAY SERENADE- SAN CLEMENTE HIGH SCHOOL MADRIGALS
The San Clemente High School Madrigals, under the direction of Alexandra Schultz, performed a holiday serenade.
INVOCATION
Joe Croft, Church Leader, Church of Jesus Christ of Latter-Day Saints gave the invocation.
PLEDGE OF ALLEGIANCE
John Conley led the Pledge of Allegiance.
23 City Council Regular and Special Meeting Minutes December 6, 2022
ELECTION RESULTS, ADMINISTRATION OF OATH OF ALLEGIANCE, AND ELECTION
OF MAYOR AND MAYOR PRO TEMPORE
A. RESULTS OF THE GENERAL MUNICIPAL ELECTION HELD ON NOVEMBER 8, 2022
Motion by Councilmember Knoblock, second by Mayor Pro Tem Duncan, CARRIED 4-0, to adopt Resolution No. 22-42 entitled A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, RECITING
THE FACT OF THE GENERAL MUNICIPAL ELECTION HELD IN THE CITY ON NOVEMBER 8, 2022, DECLARING THE RESULTS, AND SUCH OTHER MATTERS AS PROVIDED BY LAW.
AYE:
NOE:
ABSENT:
Duncan, Knoblock, Ward, and Mayor James
None
Ferguson
B. RECOGNITION OF OUTGOING COUNCILMEMBERS, CITY CLERK AND CITY
TREASURER
Councilmember Knoblock read a statement on behalf of Councilmember Ferguson in her absence; Mayor James recognized Councilmember Ferguson for her four years of service.
Mayor James presented Councilmember Ward with a City tile and Commendation in recognition of her eight years of service.
Councilmember Ward thanked city staff, her family and husband for support during her tenure as a member of the City Council; noted highlights during her term and congratulated new Councilmembers.
City Clerk Campagnolo read comments from Vonne Barnes, and former Mayor and Councilmember Bob Baker and former Mayor and Councilmember Tim Brown into the record in recognition of Councilmember Ward, which are on file with the City Clerk.
Wayne Eggleston thanked Councilmember Ward for her service to the City; noting her efforts and legacy to stop the toll road from being built in San Clemente.
Bart Crandell congratulated Councilmember Knoblock on his re-election and thanked Councilmember Ward for her service to the City, including her time on the Planning Commission.
Amanda Q narrated a PowerPoint entitled "Councilmember Kathy Ward" in recognition of Councilmember Ward. A hard copy of the presentation is on file with the City Clerk.
Joe Janis expressed gratitude for Councilmember Ward and her efforts for the
24 City Council Regular and Special Meeting Minutes December 6, 2022 City and its residents.
Mayor James presented City Clerk Baade with a City tile and Commendation in recognition of her 35 years of service to the City of San Clemente.
City Clerk Baade spoke on her experience and time in the City and the citizens of San Clemente; congratulated Councilmembers -elect.
Wayne Eggleston thanked City Clerk Baade for her service to the City.
Joe Anderson thanked City Clerk Baade for her service, knowledge and advice during his tenure on Council.
Mayor James presented City Treasurer Taylor with a City tile and Commendation in recognition of his nine years of service to the City of San Clemente.
City Treasurer Taylor thanked his family, Councilmembers that he has served alongside, and City staff.
Mayor Pro Tem Duncan presented Mayor James with a plaque in recognition of his service as Mayor during the past year.
C. OATH OF ALLEGIANCE - NEWLY-ELECTED COUNCILMEMBERS
City Clerk Campagnolo administered the Oath of Allegiance to Councilmember-elect Victor Cabral and presented him with a Certificate of Election.
Councilmember Cabral thanked those who supported his run for City Council and sat at the dais.
City Clerk Campagnolo administered the Oath of Allegiance to Councilmember-elect Mark Enmeier and presented him with a Certificate of Election.
Councilmember Enmeier thanked his supporters in his run for City Council and sat at the dais.
City Clerk Campagnolo administered the Oath of Allegiance to Councilmember-elect Steven Knoblock and presented him with a Certificate of Election.
Councilmember Knoblock thanked his supporters and took his seat.
Annie Mitchell, representing Supervisor Katrina Foley, presented Councilmembers-elect Cabral and Enmeier with Certificates of Recognition for their election to City Council of the City of San Clemente.
25 City Council Regular and Special Meeting Minutes December 6, 2022 D. ELECTION OF MAYOR AND MAYOR PRO TEMPORE
City Clerk Campagnolo opened the nominations for Mayor.
Mayor James nominated himself to the office of Mayor, second by Councilmember Cabral.
Councilmember Enmeier nominated Mayor Pro Tem Duncan to the office of Mayor, second by Mayor Pro Tem Duncan.
Councilmember Knoblock nominated himself to the office of Mayor.
Motion by Mayor James, second by Mayor Pro Tem Duncan, CARRIED 5-0, to close nominations for the office of Mayor.
AYE:
NOE:
Cabral, Duncan, Enmeier, Knoblock, and Mayor James
None
Council voted to appoint Mayor James to the office of Mayor, FAILED 2-2-1 AYE:
NOE:
ABSTAIN:
Cabral, and Mayor James
Enmeier, Duncan
Knoblock
Council voted to appoint Mayor Pro Tem Duncan to the office of Mayor, FAILED 2-3 AYE: Enmeier, and Duncan
NOE: Cabral, Knoblock, and Mayor James
Council re-voted to appoint Mayor James to the office of Mayor, FAILED 2-2-1 AYE:
NOE:
ABSTAIN:
Cabral, and Mayor James
Enmeier, and Duncan
Knoblock
Council re-voted to appoint Mayor Pro Tem Duncan to the office of Mayor, CARRIED 3-2, to appoint Mayor Pro Tem Duncan to the office of Mayor.
AYE: Enmeier, Knoblock, and Mayor Duncan
NOE: Cabral, and James
Mayor Duncan opened nominations for the office of Mayor Pro Tem.
Councilmember James nominated Councilmember Cabral for the office of Mayor Pro Tem, second by Councilmember Cabral.
Councilmember Knoblock nominated himself for the office of Mayor Pro Tem, second
26 City Council Regular and Special Meeting Minutes December 6, 2022 by Mayor Duncan.
Motion by Councilmember Knoblock, second by Mayor Duncan, CARRIED 5-0 to close nominations for the office of Mayor Pro Tem.
AYE: Cabral, Enmeier, James, Knoblock, and Mayor Duncan NOE: None
Council voted on appointing Councilmember Cabral to the office of Mayor Pro Tem, FAILED 2-1-2
AYE: Cabral, and James
NOE: Mayor Duncan
ABSTAIN: Enmeier, and Knoblock
Council voted on Councilmember Knoblock being appointed to the office of Mayor Pro Tem, CARRIED 4-1, to appoint Councilmember Knoblock to the office of Mayor Pro Tem.
AYE: Cabral, Enmeier, Knoblock, and Mayor Duncan
NOE: James
1. Motion waiving reading in full of all Resolutions and Ordinances Motion by Mayor Pro Tem Knoblock, second by Councilmember James, CARRIED 5-0, to waive reading in full of all Resolutions and Ordinances.
AYE: Cabral, Enmeier, James, Knoblock, and Mayor Duncan NOE: None
2. Consideration of agendizing items requiring immediate action Motion by Councilmember James, second by Mayor Pro Tem Knoblock, CARRIED 5-0, to agendize under New Business the discussion of the Revocation of the Conley encroachment permit. This was agendized based on the need to take immediate action and the fact that the need for action arose subsequent to the agenda being posted.
Councilmember James amended the motion, second by Mayor Pro Tem Knoblock agendized for the December 20, 2022 City Council meeting the consideration of the Revocation of the Conley encroachment permit; staff is to take no action on the permit for either the Conley's or Irion's concerning the area in question until after the item is discussed at the December 20, 2022 City Council Meeting. Please see page 6 of these minutes for a summary of action
AYE: Cabral, Enmeier, James, Knoblock, and Mayor Duncan NOE: None
27 City Council Regular and Special Meeting Minutes December 6, 2022
SPECIAL MEETING
3. Oral Communications (Part 1)
John Conley, San Clemente, narrated a Powerpoint presentation entitled "City's Revocation of Encroachment Permit". A hard copy of the presentation is on file with the City Clerk.
Sharon Conley, San Clemente, spoke on the Conley encroachment permit no.
E22-0112, revoked by the City of San Clemente.
John M. Conley spoke on the encroachment permit no. E22-0112, revoked by the City of San Clemente.
Brian Demsey spoke in support of the Conley's; urged the City to reinstate the encroachment permit. (Permit No. E22-0112.)
Jean-Louis Selam, San Clemente, spoke in support of the Conley's (permit no.
E22-0112); supports the encroachment permit being reinstated. (Permit No. E22-0112.) William Cunningham, San Clemente, spoke in support of the Conley's; opined the Irion's have submitted a false permit to the City of San Juan Capistrano.
Clive Makinson-Sanders, San Clemente, requested help from the City to stop the Metrolink trains from idling and polluting outside of his home at T-Street.
Interim City Manager Joyce provided an update on communications with the Orange County Transportation Authority concerning the trains idling at T-Street. Interim City Manager Joyce will provide an update at the December 20, 2022 City Council meeting.
Amanda Q commented on a tree that broke in the City and spoke on a potential replacement; encouraged council to establish a citizen transportation committee.
Aaron Washington congratulated the newly elected Counilmembers and encouraged Council to work with other local municipalities to establish a homeless shelter on County property and work towards getting additional sand on the beaches.
Mike Kay congratulated newly elected Council and spoke on the elections and campaign contributions and how to expand on the effort as it relates to outside influence and facts/information.
Motion by Councilmember James, second by Mayor Pro Tem Knoblock agendized for the December 20, 2022 City Council meeting the consideration of the Revocation of the Conley encroachment permit E22-0112 for the property located at 4055 Via Manzana; staff is to take no action on the permit for either the Conley's or Irion's concerning the area in question until after the item is discussed at the December 20, 2022 City Council Meeting.
28 City Council Regular and Special Meeting Minutes December 6, 2022
4. Consent Calendar
A. City Council Minutes
Motion by Councilmember James, second by Councilmember Cabral, CARRIED 5-0, to:
(1) APPROVE CITY COUNCIL REGULAR AND SPECIAL
MEETING MINUTES OF NOVEMBER 15, 2022.
(2) APPROVE CITY COUNCIL ADJOURNED REGULAR
MEETING MINUTES OF NOVEMBER 17, 2022.
AYE: Cabral, Enmeier, James, Knoblock, and Mayor Duncan NOE: None
B. Commission/Committee Minutes
Motion by Councilmember James, second by Councilmember Cabral, CARRIED 5-0, to receive and file:
(1) PUBLIC SAFETY COMMITTEE REGULAR MEETING MINUTES
OF OCTOBER 25, 2022.
(2) PLANNING COMMISSION STUDY SESSION MINUTES OF NOVEMBER 16, 2022
(3) PLANNING COMMISSION REGULAR MEETING MINUTES
OF NOVEMBER 16, 2022
(4) ZONING ADMINISTRATOR REGULAR MEETING MINUTES
OF NOVEMBER 17, 2022
AYE: Cabral, Enmeier, James, Knoblock, and Mayor Duncan NOE: None
C. Warrant Register
Motion by Councilmember James, second by Councilmember Cabral, CARRIED 5-0, to:
(1) APPROVE WIRE TRANSFER NOS.
2746 THROUGH 2748 AND WARRANT NOS.
584642 THROUGH 584801, PAID ON
11-11-22, IN THE AMOUNT OF $2,184,557.32
(2) APPROVE WIRE TRANSFER NOS.
2749 THROUGH 2755 AND WARRANT NOS.
584802 THROUGH 584946, PAID ON
11-18-22, IN THE AMOUNT OF $1,483,755.01
29 City Council Regular and Special Meeting Minutes December 6, 2022 (3) APPROVE WARRANT NOS.
584947 THROUGH 585059, PAID ON
11-25-22, IN THE AMOUNT OF $2,025,438.40
TOTAL WARRANT REGISTER……………………………….$ 5,693,750.73
AYE: Cabral, Enmeier, James, Knoblock, and Mayor Duncan NOE: None
Payroll Register
Motion by Councilmember James, second by Councilmember Cabral, CARRIED 5-0, to:
(1) APPROVE WARRANT NOS. 889 THROUGH
890 AND AUTOMATIC DEPOSIT
ADVISES 82191 THROUGH
82471, FOR THE PERIOD 10-31-22
THROUGH 11-13-22, PAID ON
11-18-22, IN THE AMOUNT OF $430,410.99
TOTAL PAYROLL REGISTER………………………………….$ 430,410.99
AYE: Cabral, Enmeier, James, Knoblock, and Mayor Duncan NOE: None
D. CONTRACT AMENDMENT - BANKING AND CUSTODY SERVICES
Motion by Councilmember James, second by Councilmember Cabral, CARRIED 5-0, to approve, and authorize the City Manager to execute, Amendment No. 2 to Contract No. C11-48, by and between the City of San Clemente and Bank of the West, providing for banking and custody services, and allow for the City Manager to execute future extensions.
E. COMMUNITY FACILITIES DISTRICT NO. 2006-01 (MARBLEHEAD COASTAL)
LOCAL AGENCY SPECIAL TAX AND BOND ACCOUNTABILITY ACT
REPORT (SB 165) FOR FISCAL YEAR ENDED JUNE 30, 2022.
Motion by Councilmember James, second by Councilmember Cabral, CARRIED 5-0, to accept, and file the Community Facilities District No. 2006-1 (Marblehead Coastal) Local Agency Special Tax and Bond Accountability Act Report (SB 165) for the Fiscal Year ended June 30, 2022.
AYE: Cabral, Enmeier, James, Knoblock, and Mayor Duncan NOE: None
30 City Council Regular and Special Meeting Minutes December 6, 2022 F. CONTRACT AMENDMENT - MONTHLY METER READING
Motion by Councilmember James, second by Councilmember Cabral, CARRIED 5-0, to:
1. Approve, and authorize the City Manager to execute, Amendment No. 3 to Contract No. C07-04, by and between the City of San Clemente and Alexander’s Contract Services Inc., providing for Meter Reading Services.
2. Authorize the City Manager to execute one year extension option.
AYE: Cabral, Enmeier, James, Knoblock, and Mayor Duncan NOE: None
H. NOTICE OF COMPLETION - ALLEY PAVEMENT REHABILITATION Motion by Councilmember James, second by Councilmember Cabral, CARRIED 5-0, to:
1. Accept the Alley Pavement Rehabilitation, from the contractor, L.C. Paving & Sealing Inc., CIP Project Nos. 10318, 18326 and 18328.
2. Authorize the Public Works Director/City Engineer to execute and record, the Notice of Completion for Alley Pavement Rehabilitation.
3. Authorize the City Clerk to release the Payment Bond 35 days from the recordation of the Notice of Completion upon verification with the Engineering Division that no liens have been levied against the Contractor, L.C. Paving & Sealing, Inc.
4. Authorize the City Clerk to release the Performance Bond upon receipt of a Warranty Bond in the amount of 25% of the construction cost.
AYE: Cabral, Enmeier, James, Knoblock, and Mayor Duncan NOE: None
I. CONTRACT AMENDMENT - AS-NEEDED GEOTECHNICAL AND RELATED SERVICES.
Motion by Councilmember James, second by Councilmember Cabral, CARRIED 5-0, to:
1. Approve, and authorize the Public Works Director/City Engineer to execute, Amendment No. 1 to Contract No. C19-65, by and between the City of San Clemente and LGC Geotechnical, Inc., providing for As-Needed Geotechnical and Related Services.
2. Approve, and authorize the Public Works Director/City Engineer to execute, Amendment No. 1 to Contract No. C19-66, by and between the City of San Clemente and Geo-Logic Associates, Inc., providing for As-Needed Geotechnical and Related Services.
31 City Council Regular and Special Meeting Minutes December 6, 2022
3. Approve, and authorize the Public Works Director/City Engineer to execute, Amendment No. 1to Contract No. C19-67, by and between the City of San Clemente and Ninyo & Moore Geotechnical & Environmental Science Consultants, providing for As-Needed Geotechnical and Related Services.
4. Approve, and authorize the Public Works Director/City Engineer to assign As-Needed Geotechnical and Related Services task authorizations under the original approved agreements and First Amendments, not to exceed $200,000 total per fiscal year, for each consultant, provided funds are available in prior City Council approved project budgets.
AYE: Cabral, Enmeier, James, Knoblock, and Mayor Duncan NOE: None
J. ADOPT RESOLUTION FOR GRANT FUNDING APPLICATION TO THE STATE
WATER RESOURCES CONTROL BOARD FOR THE WATER RECYCLING
FUNDING PROGRAM
Motion by Councilmember James, second by Councilmember Cabral, CARRIED 5-0, to adopt Resolution No. 22-43 entitled A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, APPROVING
THE APPLICATION FOR GRANT FUNDS UNDER THE STATE WATER
RESOURCES CONTROL BOARD WATER RECYCLING FUNDING PROGRAM FOR RECYCLED WATER MASTER PLAN AND EXPANSION PROJECT.
AYE: Cabral, Enmeier, James, Knoblock, and Mayor Duncan NOE: None
The following item was removed from the Consent Calendar for discussion: 4G 4G. SENIOR AQUATICS PARTNERSHIP - SAN CLEMENTE AQUATICS Yann De Fabrique, President of San Clemente Aquatics, provided an overview of the San Clemente Aquatics program and responded to Council inquiries.
Motion by Councilmember Knoblock, second by Councilmember Cabral, to:
1. Grant Senior Aquatics Partnership status to San Clemente Aquatics for a one-year agreement with two possible one-year extensions.
2. Approve, and authorize the Mayor to execute the Senior Aquatics Partnership agreement, with two possible one-year extensions.
Substitute motion by Mayor Duncan, second by Councilmember Enmeier, CARRIED 5-0, to:
1. Grant Senior Aquatics Partnership status to San Clemente Aquatics for a one-year agreement with two possible one-year extensions.
2. Approve, and authorize the City Manager to execute the Senior
32 City Council Regular and Special Meeting Minutes December 6, 2022 Aquatics Partnership agreement, with two possible one-year extensions.
AYE:
NOE:
Cabral, Enmeier, James, Knoblock, and Mayor Duncan
None
5. Special Presentations
A. California Department of Insurance
Andrea Valdes, Outreach Analyst, California Department of Insurance narrated a Powerpoint presentation concerning an overview of the California Department of Insurance and the Safer From Wildfires program. A hard copy of the presentation is on file with the City Clerk.
B. USO Camp Pendleton
Crystal Gates, Center Operations and Program Manager USO Camp Pendleton, narrated a Powerpoint presentation concerning USO programs at Camp Pendleton. A hard copy of the presentation is on file with the City Clerk.
C. Homeless Update
November Homeless update to be provided at the December 20, 2022 City Council Meeting.
BUSINESS MEETING PART 2
6. Reports
A. Commissions and Committees
None.
B. City Manager
Announcement of Contracts Approved and Executed by the City Manager Interim City Manager Joyce reported that the following contract was executed under his signature authority: MGT of America providing for part-time classification and compensation study in the amount of $17,668.
Winter Hiring Fair
Interim City Manager Joyce announced a winter hiring fair is scheduled for December 16, 2022 from 10:00 a.m. to 12:00 p.m. to recruit applicants for all aquatics positions.
C. City Attorney
None.
33 City Council Regular and Special Meeting Minutes December 6, 2022 D. Council Members
Mayor Duncan noted he is honored to be serving as Mayor and is looking forward to working with residents, staff and public safety.
Councilmember James, with the support of Councilmember Cabral and Mayor Duncan, requested the Interim City Manager issue a letter to West Coast Arborists regarding safety concerns.
Councilmember Cabral congratulated Mayor Duncan and Mayor Pro Tem Knoblock on their appointment to office.
Mayor Duncan requested clarification from the City Attorney concerning Council assigning and creating ad-hoc committees and/or subcommittees. Note: this item is agendized for the December 20, 2022 City Council Meeting.
Councilmember James, with the support of Mayor Duncan and Mayor Pro Tem Knoblock, agendized reconsideration of the design of Steed Park pickleball courts as previously approved at the November 15, 2022 City Council meeting; reconsideration of this item will be at the December 20, 2022.
E. Council Subcommittee Updates
None.
7. Closed Session Report - City Attorney
None.
8. Public Hearings
A. ORDINANCE TO ADOPT VARIOUS BUILDING CODE REGULATIONS AND
LOCAL AMENDMENTS
Public Hearing to consider the Municipal Code amendments to Title 15 Buildings and Construction and Chapter 8.16 Fire Code.
Building Official Holden narrated a Powerpoint entitled "2022 Building Code Adoption". A hard copy of the presentation is on file with the City Clerk.
Mayor Duncan opened the Public Hearing. There being no one desiring to speak, the Public Hearing was closed.
Motion by Councilmember James, second by Mayor Pro Tem Knoblock, CARRIED 5-0, to Adopt Ordinance No. 1738 entitled AN ORDINANCE OF THE
CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, AMENDING TITLE 15 CHAPTERS 15.05, 15.08, 15.11, 15.12, 15.14, 15.16, 15.17, 15.18,
15.20, 15.22, 15.23 AND TITLE 8 CHAPTER 8.16 OF THE SAN CLEMENTE MUNICIPAL CODE AND, ADOPTING BY REFERENCE THE 2022
CALIFORNIA BUILDING STANDARDS CODE (CALIFORNIA CODE OF
REGULATIONS, TITLE 24), CONSISTING IN PART OF THE 2022
34 City Council Regular and Special Meeting Minutes December 6, 2022 ADMINISTRATIVE CODE, THE 2022 CALIFORNIA BUILDING CODE, THE 2022 CALIFORNIA RESIDENTIAL CODE, THE 2022 CALIFORNIA
ELECTRICAL CODE, THE 2022 CALIFORNIA MECHANICAL CODE, THE 2022 CALIFORNIA PLUMBING CODE, THE 2022 CALIFORNIA FIRE CODE, THE 2022 CALIFORNIA GREEN BUILDING STANDARDS CODE, THE 2022 CALIFORNIA ENERGY CODE, THE 2022 CALIFORNIA HISTORICAL
BUILDING CODE, THE 2022 CALIFORNIA EXISTING BUILDING CODE, AND THE 2022 CALIFORNIA REFERENCED STANDARDS CODE, TOGETHER WITH CERTAIN ADDITIONS, AMENDMENTS AND DELETIONS.
AYE: Cabral, Enmeier, James, Knoblock, and Mayor Duncan NOE: None
B. SPECIFIC PLAN AMENDMENTS (SPA) 21-229 TO UPDATE SPECIFIC PLANS
FOR CONSISTENCY WITH THE CENTENNIAL GENERAL PLAN, ZONING
CODE, AND COASTAL LAND USE PLAN
Public Hearing to consider a recommendation of the Planning Commission to adopt City-initiated amendments to the Talega, Rancho San Clemente, Forster Ranch, Marblehead Inland, and Marblehead Coastal Specific Plans.
Associate Planner Webber narrated a Powerpoint presentation entitled "Specific Plan Amendments (SPA 21-229)" and responded to Council inquiries. A hard copy of the presentation is on file with the City Clerk.
Mayor Duncan opened the Public Hearing. There being no one desiring to speak, the Public Hearing was closed.
Motion by Councilmember James, second by Mayor Pro Tem Knoblock, CARRIED 5-0, to:
1. Determine a review of the project has been completed according to the California Environmental Quality Act (CEQA), and find SPA 21-229 does not constitute a “project” subject to CEQA [State CEQA Guidelines, §§ 15060, subd. (c)(2), 15060, subd. (c)(3), 15378(a), and 15378 (b)(5)], in that SPA 21-229 is exempt under CEQA’s common sense exemption [State CEQA Guidelines, § 15061, subd. (b)(3)]; and if SPA 21-229 were determined to be a non-exempt project subject to CEQA, environmental review is unnecessary under Public Resources Code section 21166 and State CEQA Guidelines section 15162, whereas the “project” would not cause new significant environmental effects or substantially increase the environmental effects that were fully disclosed, evaluated, and mitigated, to the extent feasible in the certified General Plan EIR.
2. Adopt Resolution No. 22-44 entitled A RESOLUTION OF CITY COUNCIL OF
THE CITY OF SAN CLEMENTE, CALIFORNIA, APPROVING SPECIFIC PLAN AMENDMENT 21-229 UPDATING SPECIFIC PLANS FOR TALEGA, RANCHO
SAN CLEMENTE, MARBLEHEAD INLAND, MARBLEHEAD COASTAL, AND
FORSTER RANCH FOR CONSISTENCY WITH THE CENTENNIAL GENERAL PLAN, ZONING CODE, AND COASTAL LAND USE PLAN.
35 City Council Regular and Special Meeting Minutes December 6, 2022 AYE: Cabral, Enmeier, James, Knoblock, and Mayor Duncan NOE: None
C. CODE AMENDMENT - AMENDING VARIOUS SECTIONS OF THE SAN CLEMENTE MUNICIPAL CODE TO IMPLEMENT THE CITY’S SIXTH CYCLE HOUSING ELEMENT (PROJECT NO. ZONING AMENDMENT 22-369).
Public Hearing to consider a recommendation of the Planning Commission to amend various provisions of the San Clemente Municipal Code to effectuate revisions contemplated be the City's Sixth Cycle Housing Element.
Senior Planner Toma narrated a Powerpoint presentation entitled "Zoning Amendments: Implementation of Sixth Cycle Housing Elemente Update" and responded to Council inquiries. A hard copy of the presentation is on file with the City Clerk.
Mayor Duncan opened the Public Hearing. There being no one desiring to speak, the Public Hearing was closed.
Motion by Mayor Pro Tem Knoblock, second by Councilmember Enmeier, CARRIED 5-0, to:
1. Introduce Ordinance No. 1740 entitled AN ORDINANCE OF THE CITY
COUNCIL OF SAN CLEMENTE, CALIFORNIA AMENDING SECTION
17.24.070 OF THE SAN CLEMENTE MUNICIPAL CODE REGARDING
DENSITY BONUSES AND OTHER AFFORDABLE HOUSING INCENTIVES
REQUIRED BY STATE LAW AND FINDING THE ACTION TO BE EXEMPT FROM CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA).
2. Introduce Ordinance No. 1741 entitled AN ORDINANCE OF THE CITY
COUNCIL OF SAN CLEMENTE, CALIFORNIA AMENDING SECTION
17.56.100 OF THE SAN CLEMENTE MUNICIPAL CODE TO COMPLY WITH ASSEMBLY BILL 139 REGARDING PARKING REQUIREMENTS FOR
EMERGENCY SHELTERS AND FINDING THE ORDINANCE NOT SUBJECT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA).
3. Introduce Ordinance No. 1742 entitled AN ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA AMENDING SECTION 17.28.270 OF THE SAN CLEMENTE MUNICIPAL CODE
GOVERNING ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY
DWELLING UNITS TO COMPLY WITH CHANGES IN STATE LAW AND
FINDING THE ACTION TO BE EXEMPT FROM CEQA (CEQA).
4. Introduce Ordinance No. 1743 entitled AN ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA AMENDING
VARIOUS PROVISIONS OF THE SAN CLEMENTE MUNICIPAL CODE TO
ENSURE CONSISTENCY WITH STATE LAW REGARDING LOW BARRIER
NAVIGATION CENTERS AND FINDING THE ACTION TO BE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA).
36 City Council Regular and Special Meeting Minutes December 6, 2022
5. Introduce Ordinance No. 1744 entitled AN ORDINANCE OF THE CITY
COUNCIL OF SAN CLEMENTE, CALIFORNIA AMENDING VARIOUS
PROVISIONS OF THE SAN CLEMENTE MUNICIPAL CODE TO ENSURE
CONSISTENCY WITH STATE LAW REGARDING SUPPORTIVE AND
TRANSITIONAL HOUSING AND FINDING THE ACTION TO BE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA).
6. Introduce Ordinance No. 1745 entitled AN ORDINANCE OF THE CITY
COUNCIL OF SAN CLEMENTE, CALIFORNIA AMENDING VARIOUS
PROVISIONS OF THE SAN CLEMENTE MUNICIPAL CODE REGARDING
RESIDENTIAL CARE FACILITIES AND FINDING THE ACTION TO BE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA).
AYE: Cabral, Enmeier, James, Knoblock, and Mayor Duncan NOE: None
D HISTORIC PROPERTY PRESERVATION AGREEMENT 22-297, 212 ROSA MILLS ACT CONTRACT, LOCATED AT 212 AVENIDA ROSA
Public Hearing to consider a Mills Act agreement between the City and the owners of a historic private single-family residence at 212 Avenida Rosa.
Assistant Planner Carrillo narrated a Powerpoint presentation entitled "Historic Property Preservation Agreements" and responded to Council Inquiries. A hard copy of the presentation is on file with the City Clerk.
Mayor Duncan opened the Public Hearing. There being no one desiring to speak, the Public Hearing was closed.
Motion by Councilmember James, second by Mayor Pro Tem Knoblock, CARRIED 5-0, to adopt Resolution No. 22-45 entitled A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA,
APPROVING HISTORIC PROPERTY PRESERVATION AGREEMENT 22-297 FOR THE PROPERTY LOCATED AT 212 AVENIDA ROSA.
AYE: Cabral, Enmeier, James, Knoblock, and Mayor Duncan NOE: None
E. HISTORIC PROPERTY PRESERVATION AGREEMENT 22-338, 217 ESPLANADE MILLS ACT CONTRACT, LOCATED AT 217 ESPLANADE
Public Hearing to consider a Mills Act agreement between the City and the owners of a historic private single-family residence at 217 Esplanade.
Assistant Planner Carrillo narrated a Powerpoint presentation entitled "Historic Property Preservation Agreement (HPPA) 22-338: 217 Esplanade" and responded to Council inquiries. A hard copy of the presentation is on file with the City Clerk.
Mayor Duncan opened the Public Hearing. There being no one desiring to
37 City Council Regular and Special Meeting Minutes December 6, 2022 speak, the Public Hearing was closed.
Motion by Councilmember Enmeier, second by Mayor Pro Tem Knoblock, CARRIED 5-0, to adopt Resolution No. 22-46 entitled A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA,
APPROVING HISTORIC PROPERTY PRESERVATION AGREEMENT 22-338 FOR THE PROPERTY LOCATED AT 217 ESPLANADE.
AYE: Cabral, Enmeier, James, Knoblock, and Mayor Duncan NOE: None
9. Unfinished Business
A. ORDINANCE NO. 1739 (SECOND READING) - PARKING RECREATIONAL
VEHICLES ON CITY STREETS AND ALLEYS
Amanda Q spoke in support of adoption of the ordinance.
Motion by Councilmember Cabral, second by Mayor Pro Tem Knoblock, CARRIED 5-0, to adopt Ordinance No. 1739 entitled AN ORDINANCE OF THE
CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA AMENDING SECTION 10.28.230(B) OF THE SAN CLEMENTE MUNICIPAL CODE
RELATING TO PARKING RECREATIONAL VEHICLES ON CITY STREETS AND ALLEYS.
AYE: Cabral, Enmeier, James, Knoblock, and Mayor Duncan NOE: None
10. New Business
A. CONSIDERATION OF ALLOCATING A DONATION TO THE FLYING
LEATHERNECKS HISTORICAL FOUNDATION
Motion by Councilmember James, second by Mayor Pro Tem Knoblock, CARRIED 5-0, to postpone consideration of allocating General Funds for a donation until such a time as it can be considered during the regular budget process.
AYE: Cabral, Enmeier, James, Knoblock, and Mayor Duncan NOE: None
B ASSEMBLY BILL 2449 - OPEN MEETINGS AND VIRTUAL COUNCIL
MEETING PARTICIPATION
Motion by Councilmember James, second by Mayor Pro Tem Knoblock, CARRIED 5-0 to receive and file the administrative report dated December 6, 2022 and on file with the City Clerk.
AYE: Cabral, Enmeier, James, Knoblock, and Mayor Duncan NOE: None
38 City Council Regular and Special Meeting Minutes December 6, 2022
11. Oral Communications (Part 2)
None.
12. Adjournment
Motion by Councilmember James, second by Mayor Pro Tem Knoblock, CARRIED 5-0, to adjourn at 8:20 p.m. to an Adjourned Regular meeting to be held on December 13, 2022 at 4:00 p.m. for the purpose of conducting Closed Session. The next Regular Meeting to be held on December 20, 2022. Part 1 of the Regular Business Meeting will commence at 5:00 p.m. and Closed Session will begin at 6:00 p.m. Part 2 of the Business Meeting will commence at 7:00 p.m. The meeting will take place at City Hall Council Chambers, located at 910 Calle Negocio, 2nd Floor, San Clemente. This meeting was adjourned in memory of the individuals that perished in the attacks at Pearl Harbor on December 7, 1941
AYE: Cabral, Enmeier, James, Knoblock, and Mayor Duncan NOE: None
_______________________________
MAYOR of the City of
San Clemente, California
_______________________________
CITY CLERK of the City of
San Clemente, California
39 AGENDA REPORT
CITY OF SAN CLEMENTE
City Council Meeting
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Meeting Date: 12/20/2022 Agenda Item: (2)
Subject:
APPROVE THE CITY COUNCIL SPECIAL MEETING MINUTES OF DECEMBER 13, 2022.
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AGENDA REPORT
CITY OF SAN CLEMENTE
City Council Meeting
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Meeting Date: 12/20/2022 Agenda Item: (3)
Subject:
APPROVE THE CITY COUNCIL SPECIAL MEETING MINUTES OF DECEMBER 15, 2022.
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AGENDA REPORT
CITY OF SAN CLEMENTE
City Council Meeting
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Meeting Date: 12/20/2022 Agenda Item: (1)
Subject:
BEACHES, PARKS AND RECREATION COMMISSION REGULAR MEETING MINUTES OF OCTOBER 11, 2022.
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Approved by the Beaches, Parks and Recreation Commission at its regular meeting on December 13, 2022.
CITY OF SAN CLEMENTE
MINUTES OF THE
BEACHES, PARKS AND RECREATION COMMISSION
REGULAR MEETING
TUESDAY, OCTOBER 11, 2022 6:00 P.M.
Chair Pro Tem Campopiano called the Regular Meeting of the Beaches, Parks and Recreation Commission of the City of San Clemente to order on Tuesday, October 11, 2022, at 6:00 p.m. at the Community Center Ole Hanson Fireside Room located at 100 N. Calle Seville, San Clemente, CA. Commissioner Foremaster led the Pledge of Allegiance.
PRESENT Susan Ambrose, Jorine Campopiano, Jennifer Elliott, Rob Feuerstein, Errol Foremaster, Amelia Mae Weinstein
ABSENT Teri Rousseau
STAFF PRESENT Samantha Wylie, Beaches, Parks and Recreation Director Cecilia Gallardo‐Daly, Community Development Director
1. SPECIAL PRESENTATIONS
A. Update from Friends of San Clemente Beaches, Parks and Recreation Foundation John Dorey, Friends of San Clemente Beaches, Parks and Recreation Foundation representative, provided information regarding Foundation history and operations; invited Commissioner participation; and responded to Commission inquiries.
B. City of San Clemente Shoreline Monitoring Program
Cecilia Gallardo‐Daly, Community Development Director, and Greg Hearon, P.E. of Coastal Frontiers Corporation, presented information regarding the City of San Clemente Shoreline Monitoring program and responded to Commission inquiries.
2. APPROVAL OF MINUTES
A. August 9, 2022 Beaches, Parks and Recreation Commission Regular Meeting
MOTION BY COMMISSIONER ELLIOTT, SECOND BY COMMISSIONER FOREMASTER, AND CARRIED 6‐0, to approve the minutes of the Beaches, Parks and Recreation Commission Meeting of August 9, 2022.
B. August 30, 2022 Joint City Council/Commissions/Committees Meeting Minutes
MOTION BY COMMISSIONER ELLIOTT, SECOND BY COMMISSIONER WEINSTEIN, AND CARRIED 3‐0‐3, WITH COMMISSIONERS AMBROSE AND FOREMASTER AND CHAIR PRO TEM CAMPOPIANO ABSTAINING, to approve the minutes of the Joint City Council/Commissions/Committees Meeting of August 30, 2022.
3. ORAL COMMUNICATIONS
47 Beaches, Parks & Recreation Commission Minutes of October 11, 2022 Page 2 Anonymous, San Clemente resident, expressed concern regarding San Gorgonio Park operations and parking.
4. CURRENT COMMUNITY ACTIVITIES AND UPDATES
A. Recreation Activities and Events
Samantha Wylie, Beaches, Parks and Recreation Director, presented photos and information regarding recent events including a movie in the park and SC Open Skate Contest; and previewed upcoming events including the Carnival Colossal, Pumpkin Splash, Red Ribbon Parade and National Night Out, Monster Dash 5k, Santa’s Village by the Sea, and Sunsets with Santa.
B. Environmental Services Update
Samantha Wylie, Beaches, Parks and Recreation Director, reported an update on California Coastal Clean Up Day; and reported an update regarding water quality information on the City website.
5. OLD BUSINESS
None.
6. NEW BUSINESS
A. Aquatics Partnership Review – San Clemente Aquatics
Samantha Wylie, Beaches, Parks and Recreation Director, summarized the contents of the report and responded to Commission inquiries.
Yann DeFabrique, San Clemente Aquatics representative, presented information regarding San Clemente Aquatics organization and operations.
MOTION BY COMMISSIONER FEUERSTEIN, SECOND BY CHAIR PRO TEM CAMPOPIANO, AND CARRIED 6‐0, to recommend the City Council grant Senior Aquatics Partnership status to San Clemente Aquatics for a one‐year agreement with two possible one‐year extensions.
B. Resolution Amending Regular Meeting Location
Samantha Wylie, Beaches, Parks and Recreation Director, summarized the contents of the report and responded to Commission inquiries.
MOTION BY COMMISSIONER ELLIOTT, SECOND BY COMMISSIONER WEINSTEIN, AND CARRIED 6‐0, to adopt Resolution No. 22‐01 amending the regular meeting location of the Beaches, Parks & Recreation Commission to City Hall Council Chambers located at 910 Calle Negocio, San Clemente, CA.
7. COMMUNICATIONS
A. Beaches, Parks & Recreation Director Report
48 Beaches, Parks & Recreation Commission Minutes of October 11, 2022 Page 3 i. Pool Lifeguard Update
Samantha Wylie, Beaches, Parks and Recreation Director, reported an update on pool lifeguard recruitment efforts and responded to Commission inquiries.
Brian Haskins, San Clemente resident, expressed support for increase in pool lifeguards and lap swim availability.
9. ITEMS FROM COMMISSION
A. Subcommittee Reports
i. Coastal Items – Chair Pro Tem Campopiano reported a recent meeting with City staff regarding a proposed coastal resiliency plan, Clean Ocean Fee, and proposed feasibility study for sand retention structures; and Commissioner Ambrose reported California Coastal Commission student contests, and OCTA authorizing emergency railroad track stabilization.
ii. Donations and Sponsorships ‐ Commissioner Feuerstein reported the initial organizing meeting and focus areas of the Subcommittee.
B. Items from Commissioners
i. PierPride Foundation ‐ Commissioner Feuerstein reported PierPride fundraising activities including a dinner and pier jump; reported the reopening of the end of Pier concession building; reported an upcoming Light Up the Pier event; and reported proposed improvements to the base of pier area. ii. Proposed Future Agenda Items – Commissioners proposed future agenda items including a Friends of San Clemente Beaches, Parks and Recreation Foundation Liaison, off‐leash dog opportunities, e‐bike enforcement on the Beach Trail, and City of Oceanside presentation regarding a feasibility study.
10. ADJOURNMENT
MOTION BY CHAIR PRO TEM CAMPOPIANO, SECOND BY COMMISSIONER AMBROSE, AND CARRIED 6‐0, to adjourn at 8:01 p.m. to a regular meeting on Tuesday, December 13, 2022 at 6:00 p.m. at City Hall Council Chambers located at 910 Calle Negocio, San Clemente, CA.
_______________________________ _______________________________ Chairperson of the Beaches, Parks & Beaches, Parks & Recreation Director Recreation Commission
49 AGENDA REPORT
CITY OF SAN CLEMENTE
City Council Meeting
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Meeting Date: 12/20/2022 Agenda Item: (2)
Department: Choose an item.
Prepared By: Click or tap here to enter text.
Subject:
Design Review Subcommittee Regular Meeting Minutes of October 26, 2022 Fiscal Impact:
Click or tap here to enter text.
Summary:
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Background:
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Discussion:
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Plan and Policy Consistency:
The (project/action/approval) is consistent with the following General Plan Goals and Policies:
· (Insert Name of General Plan Element) Goal: (Insert goal) · Policy XX-X.XX. (Insert policy)
· Policy XX-X.XX. (Insert policy)
· (Insert Name of General Plan Element) Goal: (Insert goal) · Policy XX-X.XX. (Insert policy)
In addition, the (project/action/approval) is consistent with the following (goal/policy) of the (CIP Plan/Bicycle and Pedestrian Master Plan/Parks Master Plan/insert other adopted plan or policy) in that (explain why the project/action/approval is consistent).
Council Strategy:
The (project/action/approval) is consistent with Council Strategy X - (insert strategy) - in that (explain why the project/action/approval is consistent).
Recommended Actions:
Staff Recommendation
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Meeting Date: 12/20/2022 Agenda Item: (2)
Attachment:
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Notification:
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54 AGENDA REPORT
CITY OF SAN CLEMENTE
City Council Meeting
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Meeting Date: 12/20/2022 Agenda Item: (3)
Department: Choose an item.
Prepared By: Click or tap here to enter text.
Subject:
Design Review Subcommittee Regular Meeting Minutes of November 9, 2022 Fiscal Impact:
Click or tap here to enter text.
Summary:
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Background:
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Discussion:
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Plan and Policy Consistency:
The (project/action/approval) is consistent with the following General Plan Goals and Policies:
· (Insert Name of General Plan Element) Goal: (Insert goal) · Policy XX-X.XX. (Insert policy)
· Policy XX-X.XX. (Insert policy)
· (Insert Name of General Plan Element) Goal: (Insert goal) · Policy XX-X.XX. (Insert policy)
In addition, the (project/action/approval) is consistent with the following (goal/policy) of the (CIP Plan/Bicycle and Pedestrian Master Plan/Parks Master Plan/insert other adopted plan or policy) in that (explain why the project/action/approval is consistent).
Council Strategy:
The (project/action/approval) is consistent with Council Strategy X - (insert strategy) - in that (explain why the project/action/approval is consistent).
Recommended Actions:
Staff Recommendation
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Meeting Date: 12/20/2022 Agenda Item: (3)
Attachment:
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Notification:
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AGENDA REPORT
CITY OF SAN CLEMENTE
City Council Meeting
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Meeting Date: 12/20/2022 Agenda Item: (4)
Subject:
Planning Commission Regular Meeting minutes of December 7, 2022.
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These minutes will be considered for approval at the Planning Commission meeting of 12-21-2022.
MINUTES OF THE REGULAR MEETING
OF THE CITY OF SAN CLEMENTE
PLANNING COMMISSION
December 7, 2022 @ 6:00 p.m.
San Clemente City Hall Council Chambers
910 Calle Negocio, 2
nd Floor, San Clemente, CA 92673
Teleconference via www.san-clemente.org/live or Cox Channel 854
CALL TO ORDER
Chair McKhann called the Regular Meeting of the Planning Commission of the City of San Clemente to order at 6:00 p.m. The meeting was offered in person at San Clemente City Hall Council Chambers, 910 Calle Negocio, 2
nd Floor, San Clemente, California, 92673, and
also via live stream from the City’s YouTube Channel or live on Cox Channel 854.
2. PLEDGE OF ALLEGIANCE
Commissioner Crandell led the Pledge of Allegiance.
3. ROLL CALL
Commissioners Present: Barton Crandell, Karen Prescott-Loeffler; Chair pro tem M.
Steven Camp, Vice Chair Cameron Cosgrove, Chair Scott
McKhann
Commissioners Absent: Brent Davis, Gary P. McCaughan, M.D.
Staff Present: Adam Atamian, Dep. Community Development Dir./ City Planner Jonathan Lightfoot, Economic Development Officer
David Carrillo, Assistant Planner
Zachary Ponsen, Assistant City Engineer
Ryan Kim, Senior Civil Engineer/Traffic Engineer
Matthew Richardson, Assistant City Attorney
4. SPECIAL ORDERS OF BUSINESS
None.
5. MINUTES
A. Minutes from the Regular Planning Commission Study Session of November 16, 2022.
B. Minutes from the Regular Planning Commission Meeting of November 16, 2022.
60 Minutes of Regular Planning Commission Meeting of December 7, 2022 Page 2
IT WAS MOVED BY CHAIR MCKHANN, SECONDED BY COMMISSIONER
CRANDELL AND UNANIMOUSLY CARRIED TO RECEIVE AND FILE THE MINUTES FROM THE NOVEMBER 16, 2022, PLANNING COMMISSION
STUDY SESSION AND PLANNING COMMISSION REGULAR MEETING AS SUBMITTED.
6. ORAL AND WRITTEN COMMUNICATION
None.
7. CONSENT CALENDAR
None.
8. PUBLIC HEARING
A. Conditional Use Permit 22-328, Amendment to Outlet Conditional Use Permit (CUP 16-349) for Outdoor Special Events, 101 West Avenida Vista Hermosa
A request to expand the previously approved program of outdoor events at the Outlets to include a weekly car show, biweekly food distribution, and seasonal events, such as a Christmas service or “Trunk or Treat” Halloween event, hosted in partnership with local non-profit or religious groups.
Jonathan Lightfoot, Economic Development Officer, narrated a PowerPoint Presentation entitled, “Outdoor Events at Outlets at San Clemente, CUP 22- 328/Amending CUP 16-349,” dated December 7, 2022. A copy of the Presentation is on file in the Planning Division. Staff is recommending halving the number of Car Shows between the months of October and May; modification of the ingress and egress on site, directional signage, use of flashing red lights to break up traffic flow and reduce speeding and encouragement for participants to use the entrance closest to Chick-fil-A.
Zachary Ponsen, Assistant City Engineer, noted that the flashing red lights option is an alternative for slowing traffic at intersections, but does require City staff management on-site in case of freeway detours or other unforeseen events. Additional/alternative mitigation measures can also be considered if issues occur.
Susan Jennrich, General Manager at the Outlets at San Clemente (“Outlets”), described the Cars and Coffee (“Car”) Show and other events held at the Outlets; requested the Commission continue to allow the existing and expand events in response to community support.
James Wehr, representing the Wehr family which operates of the car show event, discussed the format followed at the car show events as well as potential events in the planning stages. Foot traffic at the Outlets and 61 Minutes of Regular Planning Commission Meeting of December 7, 2022 Page 3 restaurant sales show record growth on the car show days. The car show format has consistently evolved during its tenure to improve traffic circulation, respond to complaints, and adjust for safety concerns, including adding staff and signage, banning of individuals with a record of unacceptable behavior, and warnings posted on promotional materials. After the car exhibition spots are taken, the event is closed off to additional cars for display purposes. He described steps taken to identify and ban those individuals who are not following the rules, suggested that limiting the event to twice a month will create confusion for spectators and potential chaos with traffic if volunteer staff are not on site to help manage, and noted the majority of attendees live in San Clemente. In response to concerns raised in communications to the Commission, he agreed to focus effort on reducing traffic noise caused by revving of engines, high traffic speeds, and discourteous and unsafe driving behavior. With regard to flyers with the rules posted, the Outlets management may not be in favor as discarded flyers may result in littering. Changes in the ingress/egress points may cause traffic backup; the number of bad behavior incidents at the events have been few; the events create comradery with cars enthusiasts, are free to the public, and are a tremendously enjoyable social event for many. He agreed to add an email address to the website for complaint reporting/messaging with a log to list complaints and indicating their response/action. The seasoned volunteers redirect traffic as necessary.
Michael Muscarella, Chief of Security at the Outlets, reviewed alternative ideas discussed to better manage the participants and spectators attending on any given day; noted 250 to 300 is the maximum amount of exhibition cars allowed and estimated that a crowd of 600 attendees over the 3-hour event timeline.
He suggested routing cars through the rear of the property will create a bottleneck and requested elimination of the condition requiring flashing lights.
Security for the show includes two Outlet officers, an additional paid security guard for the show and a management personnel. On most Car Show Saturdays, security personnel spend their day watching over the parking lot from Starbucks. Volunteers are on radio with security, provide traffic direction for the most part, and have lists of names and car photos of those that have been banned. With regard to the one incident that occurred this past fall, the physical alteration dissipated on its own and OCSD deputies arrived promptly.
Many of the existing safety measures were undertaken following this incident.
Since the car show’s inception, various circulation routes, combinations, staff postings, etc., have been tried to maximize the efficiency and safety of the events; the current format works very well. He noted the existing security officers are required to be certified by the State of California.
Deputy Joshua Roberts, OCSD, regularly patrols this area and remains on site on Saturday mornings unless dispatched elsewhere. His presence on site and on surrounding streets calms down bad behavior and/or traffic. Flashing red lights may help prevent speeding and maintain steady traffic. In his experience, there is not an excessive amount of bad behavior and the rare incidents are handled quickly and efficiently by the combination of volunteers and paid security staff. The CHP is also on I-5 to ticket those speeding/causing 62 Minutes of Regular Planning Commission Meeting of December 7, 2022 Page 4 disturbances and there is a CA Vehicle Code Section that can be used to ticket those with modified exhaust systems or excessively loud engine noise.
Chair McKhann opened the public hearing.
Patrick Hennebry, Scott Mahl, Hal Kolp, Scott Tree, Sabrina Londry, Larry Tiberi, and Colin Dearborn, San Clemente residents; Rick Loeffler, Jace Mullen, Sean Selff, Ida Chavez, Craig Guest, Gary Giacomini, Sabrina Londry, and Amit Hasan provided testimony.
Summary of the comments made during public testimony as follows:
Cars and Coffee is a great event for locals and visitors alike. There is much comradery around love of cars, and the event attracts a mix of ethnicities, cultures, ages, etc. Good multigenerational family event that affords young people the opportunity to see cars they could only dream of seeing.
Great location to bring dogs for socialization.
Suggested the event proceed with certified, dedicated and/or unified security that is able to intervene in the event an incident occurs. It is a fun event featuring great staff, but 12-15 volunteers and “mall” security is not adequate for the number of attendees.
Amongst the volunteers is a number of active and retired military to help in an incident. The viral incident that occurred was dispersed in 6.5 minutes with help from on-site security and volunteers. Deputies arrived shortly afterwards.
The Outlets endured much loss of business during the pandemic and a recession might be on its way. The extra income generated by the events help to keep the businesses afloat.
The Auto Academy at San Clemente High School encourages its students to attend and support the car show due to its positive example of how car owners should act as well as the opportunities to see unique vehicles; the events provide a refutation to the bad behavior of drivers in movies.
Appreciation for the food distribution events which provide much needed relief for those struggling to feed themselves and families. Adjacent restaurants have experienced increases in business, revenue and paid staff as a result of the Car and other events. The Car show is great for today’s youth to encourage shop and photography skills; brings youth and older adults together over love of cars; youth are encouraged by car owners that they too can realize their dreams of exotic/classic/restored car ownership.
Many friendships, group discussions, fellowship, encouragement, etc., has been shared because car enthusiasts have a place to meet with like-minded people.
The existing traffic flow is working very well; mandating the way traffic is circulated may bring about new challenges.
63 Minutes of Regular Planning Commission Meeting of December 7, 2022 Page 5 Car shows motivate car enthusiasts to work hard and learn their dreams are attainable; brings youth and elderly together over love of cars; provides bonding opportunities, ability to grow knowledge and inspiration for Auto Academy members.
There being no further testimony, Chair McKhann closed the public hearing.
During the ensuing discussion, the Commissioners, either individually or in agreement, provided the following commentary:
Suggested all complaints be tracked, with detailed complaint, response/action taken, points of contact, etc., logged and available for City staff review; radar guns and traffic enforcement personnel on Avenida Vista Hermosa, as well as any other streets negatively affected, for a period of time in order to see if the area can self-correct its noise and traffic violations.
Suggested retention of existing “Car Parade” route as many teens/photography students/car enthusiasts are there taking photos as the cars pass and/or enjoying the parade.
Preferred the weekly format rather than biweekly for certain months as holding the event weekly establishes a rhythm and encourages attendance. Changing it to biweekly can confuse regular attendees. The car shows have been exciting, brought revenue, provided an opportunity for families to assemble, encouraged youth in the community, enabled friendships based on love of cars, etc., and in general has been very positive for the community. Loud engine noise, speeding cars and inconsiderate drivers are a concern on the streets nearby and put the community at risk. Supported staff continuing to work with the car show operators, Outlet management, OCSD, and others to improve the situation on the adjacent streets. Did not support rerouting the car parade to the rear or requiring cars to stop at every intersection with flashing red lights; Suggested car exiting be routed near the Chick-fil-A driveway; opposed mandating rigid traffic circulation as the operators need flexibility to adjust during specific seasons, combination events, etc.
Suggested hiring a professional security officer or subcontracting with retired or existing OCSD deputies in addition to existing security and volunteers to ensure safety at the Car Shows.
Suggested they focus on the subject of the complaints received, which is the loud engine noises and dangerous drivers off site. Suggested the current security be replaced with an OCSD deputy funded by the operator and at least two, 840-hour trained and uniformed security officers; established with staff that most events required to provide security feature service of alcohol. This event does not serve alcohol.
Established with staff that OCSD Sargent Streeter has reviewed the proposal and is not recommending any changes to the existing security; 64 Minutes of Regular Planning Commission Meeting of December 7, 2022 Page 6 due to a smaller pool of deputies, it is unlikely that a deputy would be available each and every Saturday for the event; noted the operator would be responsible for the extra cost of a part time deputy at a cost of approximately $500/day.
Suggested the approval go forward with the four security providers each Saturday as outlined in the application and approved by OCSD. In the event this is insufficient, the City can ask OCSD for additional review and recommendation.
IT WAS MOVED BY CHAIR MCKHANN, SECONDED BY COMMISSIONER CRANDELL, AND UNANIMOUSLY CARRIED TO:
1) Determine the project is categorically exempt from the requirements of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15301, Class No. 1(e) (Existing Facilities); and direct staff to file a Notice of Exemption, and:
2) Adopt Resolution PC 22-031, entitled, “A RESOLUTION OF THE
PLANNING COMMISSION OF THE CITY OF SAN CLEMENTE,
CALIFORNIA, APPROVING CONDITIONAL USE PERMIT 22-328,
AMENDING CUP 16-349, A REQUEST TO EXPAND THE PREVIOUSLY
APPROVED PROGRAM OF OUTDOOR EVENTS AT THE OUTLETS TO
INCLUDE A WEEKLY CAR SHOW, BIWEEKLY FOOD DISTRIBUTION, AND SEASONAL EVENTS, SUCH AS A CHRISTMAS SERVICE OR “TRUNK OR TREAT” HALLOWEEN EVENT, HOSTED IN PARTNERSHIP WITH LOCAL
NON-PROFIT OR RELIGIOUS GROUPS AT THE OUTLETS AT SAN
CLEMENTE LOCATED AT 101 WEST AVENIDA VISTA HERMOSA”.
Amended as follows:
sentence.
Condition 53.c. “Security and Management Plan” on the dais and attached as “Attachment 6”. Additionally, the Plan shall be subject to annual review by staff.
Staff to include within a condition a stated preference that car show exhibitors be directed to the back entrance, subject to staff review and recommendations.
Staff to add Condition no. 53.i. to require the applicant to add an email address dedicated to complaints received via its website or otherwise, keep a log of all complaints received and provide information on how the issue was resolved or what action was taken. This log must be available for staff review upon request.
[DECISION FINAL. SUBJECT TO APPEAL OR CALL UP BY COUNCIL.] 65 Minutes of Regular Planning Commission Meeting of December 7, 2022 Page 7 Chair McKhann recessed the meeting at 8:45 p.m. and reconvened at 8:57 p.m.
B. Conditional Use Permit 22-342, The Happening Social Organization, 657 Camino De Los Mares, Suite 130
A request to allow a social organization for young adults with disabilities at a commercial suite located within a commercial center that consists primarily of medical offices, between the hours of 12:00 p.m. and 8:00 p.m., Tuesday through Saturday.
David Carrillo, Assistant Planner, narrated a PowerPoint Presentation entitled, “The Happening Social Organization, CUP 22-342,” dated December 7, 2022.
A copy of the Presentation is on file in the Planning Division.
Stratten Palmer, applicant, has worked 15 years in the Special Needs field and currently runs a ministry for special needs adults at a nearby church. The social club will provide an opportunity for Special Needs individuals to interact with peers and have fun activities. He anticipates less than 10% will need to have their own caregiver; Initial plans call for three, 3-hour classes per day, with a maximum of 45 per class, between 10:00 a.m. to 9:00 p.m. Attendees for the most part are high-functioning and job-holding special needs adults. Although he will be the adult in charge, he has volunteers and caregivers for other adults attending to provide assistance if necessary.
Chair McKhann opened the public hearing.
Elizabeth Luna, Capistrano Beach resident and Stratten Palmer’s fiancé, noted she will be volunteering at the social club during classes. She opined that Mr. Palmer is gifted in his ability to connect with special needs adults and believes the social club will be life-changing for them. Those needing extra care will be required to have their own caregiver.
Gary Fitzpatrick, no city of residence given, supported the social club due to the need for clubs, activities, and/or opportunities for social interaction for highfunctioning special needs adults. He is confident Mr. Stratten will succeed in his efforts as he is very supportive of them through his existing ministry and well known to many of the potential attendees.
Pam Nidelle, no city of residence given, is a mother of a special needs daughter who is very excited about this opportunity. She sees the great need for this type of facility and encouraged the Commission to approve the project as it will be an example for similar projects.
There being no further testimony, Chair McKhann closed the public hearing.
Discussion ensued regarding potential to create a drop off area in the parking lot with conclusion that it was not feasible at this time. Mr. Stratten will provide any necessary signage to ensure adequate drop off and pick up of clients. The 66 Minutes of Regular Planning Commission Meeting of December 7, 2022 Page 8 Commission also discussed potential to add a condition to require designated spaces, with Deputy Director Atamian suggesting it was unnecessary at this time based on the Parking Management Plan required by the conditions of approval.
IT WAS MOVED BY COMMISSIONER CRANDELL, SECONDED BY
COMMISSIONER COSGROVE, AND UNANIMOUSLY CARRIED TO:
1) Determine the project is Categorically Exempt from the requirements of the CEQA pursuant to CEQA Guidelines Section 15301 (Class 1: Existing Facilities); and
2) Adopt Resolution no. PC 22-034, entitled, “A RESOLUTION OF THE
PLANNING COMMISSION OF THE CITY OF SAN CLEMENTE,
CALIFORNIA, APPROVING CONDITIONAL USE PERMIT 22-342, THE
HAPPENING SOCIAL ORGANIZATION, TO ALLOW A SOCIAL
ORGANIZATION FOR YOUNG ADULTS WITH DISABILITIES AT AN
EXISTING COMMERCIAL SUITE LOCATED AT 657 CAMINO DE LOS
MARES, SUITE 130”.
[DECISION FINAL. SUBJECT TO APPEAL OR CALL UP BY COUNCIL.]
9. NEW BUSINESS
A. Consideration of Traffic Calming in the Coast Neighborhood – Calle Frontera, Calle Juarez and Calle Vallarta
Zachary Ponsen, Assistant City Engineer, displayed the street graphics indicating the proposed changes.
Chair McKhann opened the public hearing, and there being no public testimony, closed the public hearing.
IT WAS MOVED BY COMMISSIONER CRANDELL, SECONDED BY
COMMISSIONER PRESCOTT-LOEFFLER, AND UNANIMOUSLY CARRIED
TO FORWARD THE PROPOSED TRAFFIC CALMING MEASURES TO THE CITY COUNCIL TO APPROVE AS FOLLOWS:
1) Install electric speed feedback signs, advisory speed signs, and edge lines as illustrated in Attachment 5.
2) Appropriate the required funds from the traffic calming budget. 3) Deploy the speed feedback trailer every month until the completion of the installation.
4) Request Police Services to consider increasing speed enforcement in The Coast Community.
[ACTION SUBJECT TO CITY COUNCIL APPROVAL.]
67 Minutes of Regular Planning Commission Meeting of December 7, 2022 Page 9
10. OLD BUSINESS
None.
11. REPORTS OF COMMISSIONERS AND STAFF
A. Staff Waivers
B. Tentative Future Agenda
Deputy Director Ponsen announced that the update on the Calle Faro Street Calming Measures work would be on the Commission’s next meeting agenda.
Deputy Director Atamian announced that there will be a meeting on December 21, 2022; recommended the Commission consider canceling its meeting of January 4, 2023, as City Council has canceled its meeting of January 3, 2023, and currently there are no items on the Commission’s agenda.
Report received and filed.
12. ADJOURNMENT
IT WAS MOVED BY CHAIR MCKHANN, SECONDED BY COMMISSIONER CRANDELL AND UNANIMOUSLY CARRIED TO ADJOURN AT 9:56 P.M. TO THE
NEXT REGULAR PLANNING COMMISSION MEETINGS TO BE HELD IN-PERSON ON DECEMBER 21, 2022, AT 6:00 P.M. AT THE SAN CLEMENTE CITY HALL COUNCIL CHAMBERS LOCATED AT 910 CALLE NEGOCIO, SAN CLEMENTE, CA, 92672, AND TELECONFERENCE AVAILABLE TO THE PUBLIC VIA LIVE STREAM FROM THE CITY’S YOUTUBE CHANNEL OR LIVE ON COX CHANNEL 854.
Respectfully submitted,
Scott McKhann, Chairman
Attest:
Adam Atamian, Deputy Community Development Director
68 AGENDA REPORT
CITY OF SAN CLEMENTE
City Council Meeting
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Meeting Date: 12/20/2022 Agenda Item: (1)
Subject:
Approve Wire Transfer Nos.
2756 through 2765 and Warrant Nos.
585060 through 585187, paid on
12-2-22, in the amount of $2,447,393.66
CITY OF SAN CLEMENTE Page 1 of 1 Printed on 12/13/2022
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78 AGENDA REPORT
CITY OF SAN CLEMENTE
City Council Meeting
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Meeting Date: 12/20/2022 Agenda Item: (2)
Subject:
Approve Wire Transfer Nos.
2766 through 2767 and Warrant Nos.
585188 through 585316, paid on
12-9-22, in the amount of $6,060,492.47
CITY OF SAN CLEMENTE Page 1 of 1 Printed on 12/16/2022
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AGENDA REPORT
CITY OF SAN CLEMENTE
City Council Meeting
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Meeting Date: 12/20/2022 Agenda Item: (3)
Subject:
Approve Wire Transfer Nos.
2768 through 2771 and Warrant Nos.
585317 through 585453, paid on
12-16-22, in the amount of $1,797,256.16
CITY OF SAN CLEMENTE Page 1 of 1 Printed on 12/16/2022
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AGENDA REPORT
CITY OF SAN CLEMENTE
City Council Meeting
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Meeting Date: 12/20/2022 Agenda Item: D.
Department: Public Works
Prepared By: Zak Ponsen, Assistant City Engineer
Subject:
City of San Clemente Fiscal Year 2021-2022, Measure M2 Expenditure Report Fiscal Impact:
This action does not require funding, but the Orange County Transportation Authority (OCTA) could suspend or delay Comprehensive Transportation Funding Programs and M2 Local Fair Share funds to the City if this required expenditure report is not submitted to OCTA.
Summary:
Staff recommends that the City Council approve Measure M2 Expenditure Report for Fiscal Year 2021-2022.
Background:
In November 2006, Orange County voters approved a renewal of Measure M, commonly referred to as Measure M2, to extend the half-cent sales tax for local transportation improvements from 2011 to 2041. Measure M2 requires that each jurisdiction adopt and provide to the OCTA an annual expenditure report to account for M2 funds, developer/traffic impact fees and funds expended by the jurisdiction to satisfy maintenance of effort requirements. The report is required within six months of each jurisdiction's fiscal year end.
Discussion:
Approval of the attached resolution and submittal of the attached M2 Expenditure Report by December 31, 2022 will ensure that the City is in compliance with the annual expenditure report requirement. OCTA reviewed a draft of the Expenditure Report and had no objections.
Plan and Policy Consistency:
The action is consistent with the following General Plan Goals and Policies:
· Roadway System Goal: Create a balanced transportation network that provides mobility and access for all modes of travel, including motor vehicles, transit, bicyclists, pedestrians, and rail traffic.
· M-3.02. Complete Streets Roadway Standards. We require that pedestrian, vehicular, and bicycle circulation on public and private property is coordinated and designed to maximize safety, comfort and aesthetics and is consistent with Federal, State, Orange County, and local laws, codes, and standards.
The action is also consistent with the goal of the Annual CIP Plan and the Bicycle and Pedestrian Master Plan in that Measure M2 helps fund Public Works projects for City streets and the public right CITY OF SAN CLEMENTE Page 1 of 2 Printed on 12/13/2022
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Meeting Date: 12/20/2022 Agenda Item: D.
of way.
Council Strategy:
The action is consistent with Council Strategy 3 - Update and maintain infrastructure that reflects best available technology and service - in that funds received through Measure M2 help maintain the City’s roadway system and the public right of way.
Recommended Actions:
Staff Recommendation
STAFF RECOMMENDS THAT the City Council adopt Resolution No. ______ entitled “A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, TO ADOPT THE FISCAL YEAR 2021-2022 MEASURE M2 EXPENDITURE REPORT FOR THE CITY OF SAN CLEMENTE.”
Attachment:
1. Resolution No. _______
2. M2 Expenditure Report FY 2021-2022
Notification:
None.
CITY OF SAN CLEMENTE Page 2 of 2 Printed on 12/13/2022
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Attachment 1
RESOLUTION NO. __________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, TO ADOPT THE FISCAL YEAR 2021-2022 MEASURE M2 EXPENDITURE REPORT FOR THE CITY OF SAN CLEMENTE.
WHEREAS, local jurisdictions are required to meet eligibility requirements and submit eligibility verification packages to Orange County Transportation Authority (OCTA) in order to remain eligible to receive M2 funds; and
WHEREAS, local jurisdictions are required to adopt an annual M2 Expenditure Report as part of one of the eligibility requirements; and
WHEREAS, local jurisdictions are required to account for Net Revenues, developer/traffic impact fees, and funds expended by local jurisdiction in the M2 Expenditure Report that satisfy the Maintenance of Effort requirements; and
WHEREAS, the M2 Expenditure Report shall include all Net Revenue fund balances, interest earned and expenditures identified by type and program or project; and WHEREAS, the M2 Expenditure Report must be adopted and submitted to the OCTA each year within six months of the end of the local jurisdiction’s fiscal year to be eligible to receive Net Revenues as part of M2.
NOW, THEREFORE, BE IT RESOLVED that the City Council for the City of San Clemente does hereby inform OCTA that:
a) The M2 Expenditure Report is in conformance with the template provided in the Measure M2 Eligibility Guidelines and accounts for Net Revenues including interest earned, expenditures during the fiscal year and balances at the end of fiscal year. b) The M2 Expenditure Report is hereby adopted by the City of San Clemente. c) The City of San Clemente Finance Director is hereby authorized to sign and submit the M2 Expenditure Report to OCTA for the fiscal year ending 2022. 106
PASSED AND ADOPTED this _____ day of ____________________, _______.
ATTEST:
____________________________ ____________________________ City Clerk of the City of Mayor of the City of
San Clemente, California San Clemente, California
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §
CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. _________ was adopted at a regular meeting of the City Council of the City of San Clemente held on the _______ day of _______________________, _________, by the following vote:
AYES:
NOES:
ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of _________________, ________. __________________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
_________________________
City Attorney
i:\cd\engineering\secure\admin\2022\12-20-22\ att 1 - octa expenditure resolution 2021-22.docx 107
City of San Clemente
M2 Expenditure Report
Fiscal Year Ended June 30, 2022
Beginning and Ending Balances
Schedule 1
Line
No.
Amount Interest
A-M Freeway Projects 1 $ - $ -
O Regional Capacity Program (RCP) 2 $ - $ -
P Regional Traffic Signal Synchronization Program (RTSSP) 3 $ - $ - Q Local Fair Share 4 $ 218,453.00 $ -
R High Frequency Metrolink Service 5 $ - $ -
S Transit Extensions to Metrolink 6 $ - $ -
T Convert Metrolink Station(s) to Regional Gateways that connect Orange County with High-Speed Rail Systems 7 $ - $ - U Senior Mobility Program or Senior Non-Emergency Medical Program
8 $ 166,725.00 $ -
V Community Based Transit/Circulators 9 $ (311,826.00) $ - W Safe Transit Stops 10 $ - $ -
X Environmental Cleanup Program (Water Quality) 11 $ - $ - Other* 12 $ - $ -
13 $ 73,352.00 $ -
Monies Made Available During Fiscal Year 14 $ 1,972,152.00 $ 970 15 $ 2,045,504.00 $ 970
Expenditures During Fiscal Year 16 $ 1,824,446.00 $ 5,250 A-M Freeway Projects 17 $ - $ -
O Regional Capacity Program (RCP) 18 $ - $ -
P Regional Traffic Signal Synchronization Program (RTSSP) 19 $ - $ - Q Local Fair Share 20 $ 617,888.00 $ -
R High Frequency Metrolink Service 21 $ - $ -
S Transit Extensions to Metrolink 22 $ - $ -
T Convert Metrolink Station(s) to Regional Gateways that connect Orange County with High-Speed Rail Systems 23 $ - $ - U Senior Mobility Program or Senior Non-Emergency Medical Program
24 $ 241,414.00 $ (4,280)
V Community Based Transit/Circulators 25 $ (638,244.00) $ - W Safe Transit Stops 26 $ - $ -
X Environmental Cleanup Program (Water Quality) 27 $ - $ - Other* 28 $ - $ -
* Please provide a specific description
Balances at End of Fiscal Year
Balances at Beginning of Fiscal Year
Balances at Beginning of Fiscal Year
Description
Total Monies Available (Sum Lines 13 & 14)
Attachment 2
108
City of San Clemente M2 Expenditure Report
Fiscal Year Ended June 30, 2022
Sources and Uses
Schedule 2
Line
No.
Amount Interest
A-M Freeway Projects 1 $ - $ -
O Regional Capacity Program (RCP) 2 $ - $ -
P Regional Traffic Signal Synchronization Program (RTSSP) 3 $ 10,080 $ - Q Local Fair Share 4 $ 1,282,607 $ 5,250
R High Frequency Metrolink Service 5 $ - $ -
S Transit Extensions to Metrolink 6 $ - $ -
T Convert Metrolink Station(s) to Regional Gateways that connect Orange County with High-Speed Rail Systems 7 $ - $ -
U Senior Mobility Program or Senior Non-Emergency Medical Program ** 8 $ 97,309 $ (4,280) V Community Based Transit/Circulators 9 $ 362,156 $ -
W Safe Transit Stops 10 $ - $ -
X Environmental Cleanup Program (Water Quality) 11 $ 220,000 $ - Other* 12 $ - $ -
13 $ 1,972,152 $ 970
A-M Freeway Projects 14 $ - $ -
O Regional Capacity Program (RCP) 15 $ - $ -
P Regional Traffic Signal Synchronization Program (RTSSP) 16 $ 10,080 $ - Q Local Fair Share 17 $ 883,172 $ 5,250
R High Frequency Metrolink Service 18 $ - $ -
S Transit Extensions to Metrolink 19 $ - $ -
T Convert Metrolink Station(s) to Regional Gateways that connect Orange County with High-Speed Rail Systems 20 $ - $ -
U Senior Mobility Program or Senior Non-Emergency Medical Program 21 $ 22,620 $ - V Community Based Transit/Circulators 22 $ 688,574 $ -
W Safe Transit Stops 23 $ - $ -
X Environmental Cleanup Program (Water Quality) 24 $ 220,000 $ - Other* 25 $ - $ -
26 $ 1,824,446 $ 5,250
27 $ 147,706 $ (4,280)
* Please provide a specific description
** Negative interest is due to a downturn in the investment market in FY 2021-22.
TOTAL BALANCE (Subtract line 26 from 13)
TOTAL EXPENDITURES (Sum lines 14 to 25)
Description
Revenues:
TOTAL REVENUES (Sum lines 1 to 12)
Expenditures:
109
110
City of San Clemente
M2 Expenditure Report
Fiscal Year Ended June 30, 2022
Local Fair Share Project List
Schedule 4
PROJECT NAME AMOUNT EXPENDED
Street Improvement Projects FY 2021 $ 443,109.00
Street Improvement Projects FY 2022 $ 113,016.00
As Needed Pavement Repairs FY 2022 $ 255,431.00
As Needed Pavement Repairs FY 2023 $ 76,866.00
$ 888,422.00
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AGENDA REPORT
CITY OF SAN CLEMENTE
City Council Meeting
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Meeting Date: 12/20/2022 Agenda Item: E.
Subject:
ORDINANCE NOS. 1740, 1741, 1742, 1743, 1744 AND 1745 (SECOND READING) - IMPLEMENTING THE CITY’S SIXTH CYCLE HOUSING ELEMENT
CITY OF SAN CLEMENTE Page 1 of 1 Printed on 12/16/2022
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ORDINANCE NO. 1740
AN ORDINANCE OF THE CITY COUNCIL OF SAN
CLEMENTE, CALIFORNIA AMENDING SECTION
17.24.070 OF THE SAN CLEMENTE MUNICIPAL
CODE REGARDING DENSITY BONUSES AND
OTHER AFFORDABLE HOUSING INCENTIVES
REQUIRED BY STATE LAW AND FINDING THE
ACTION TO BE EXEMPT FROM CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA)
WHEREAS, California’s Density Bonus Law (Gov. Code, § 65915 et seq.) encourages developers to build affordable housing (e.g., very low-, low- and moderateincome units) by requiring cities to grant a density bonus, concessions, incentives, and waivers of developments standards for projects that commit certain percentages of their units to affordable housing; and
WHEREAS, Government Code Section 65915 requires cities to adopt an ordinance specifying how the city will implement State Density Bonus Law; and WHEREAS, Section 17.24.070 of the San Clemente Municipal Code (“SCMC”) contains the City’s regulations implementing State Density Bonus Law; and WHEREAS, SCMC section 17.24.070 was last amended via Ordinance No. 1652, which was adopted on May 15, 2018; and
WHEREAS, the California Legislature frequently amends the State Density Bonus Law; and
WHEREAS, the City desires to remain in compliance with the requirements of State Density Bonus Law; and
WHEREAS, this ordinance (“Ordinance”) updates SCMC section 17.24.070 by replacing the contents thereof with a provision that incorporates the State Density Bonus Law by reference. As amended by this Ordinance, SCMC section 17.24.070 will provide that density bonuses and other affordable housing incentives required by State law (including but not limited to Government Code section 65915 et seq.) will be available to applicants on the terms and conditions specified in State law; and WHEREAS, incorporating the State Density Bonus Law by reference will ensure that the SCMC remains current whenever the Legislature amends the State Density Bonus Law; and
WHEREAS, on November 2, 2022, the Planning Commission conducted a duly noticed public hearing to consider the staff report, recommendations by staff, and public testimony concerning the Ordinance. Following the public hearing, the Planning Commission voted to forward the Ordinance to the City Council with a recommendation in favor of its adoption; and
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WHEREAS, on November 23, 2022, the City gave public notice of a City Council public hearing to be held to consider this Ordinance by advertisement in a newspaper of general circulation; and
WHEREAS, on December 6, 2022, the City Council conducted a duly noticed public hearing to consider the Ordinance, including: (1) the public testimony and agenda reports prepared in connection with the Ordinance; (2) the policy considerations discussed therein; and (3) the consideration and recommendation of the Planning Commission; and
WHEREAS, all legal prerequisites to the adoption of the Ordinance have occurred.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Incorporation of Recitals. The recitals above are true and correct and are hereby adopted as findings as if fully set forth herein.
SECTION 2. CEQA. The City Council finds that adoption of this Ordinance is exempt from the California Environmental Quality Act (“CEQA”) pursuant to Section 15358 (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Moreover, the proposed action is also exempt under CEQA Guidelines Section 15305 as a minor alteration in land-use limitation, as the proposed action does not allow any more density than before; it merely incorporates California’s density-bonus statute and allowances by direct reference to the statute.
Lastly, the City Council finds that this Ordinance is also exempt under CEQA pursuant to Guidelines Section 15061(b)(3) (there exists no possibility that the activity will have a significant adverse effect on the environment) because this Ordinance will not cause a change in any of the physical conditions within the area affected by the Ordinance.
SECTION 3. Required Findings. In accordance with subsection (F) of San Clemente Municipal Code section 17.16.040, the City Council hereby makes the following findings:
1. General Plan. This Ordinance’s amendments to San Clemente Municipal Code section 17.24.070 are consistent with the City’s adopted General Plan. Specifically, Land Use Element Policy LU-1.01 provides that the City should accommodate the development of a variety of housing types, styles and densities. This Ordinance is consistent with—and effectuates—Policy LU-1.01 by ensuring that qualifying housing projects are afforded the requisite concessions, incentives, and density bonuses required under State law. Collectively, this will facilitate housing projects with a variety of housing types, styles and densities in the City. Furthermore, this Ordinance is consistent with, and in furtherance of, the General Plan as it implements a component of Program 14 from the City’s Sixth Cycle Housing Element 115
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“Housing Action Plan”—which, in relevant part, provides that the City will update its density bonus ordinance to comply with recent changes in State law.
2. Health, Safety, and Welfare. Adoption of the Ordinance will not adversely affect the public health, safety, and welfare as it simply updates the San Clemente Municipal Code to comply with state law requirements governing the instances where the City must provide density bonuses and other affordable housing incentives required by state law. Adoption of this Ordinance is also consistent with—and contemplated by—the City’s Sixth Cycle Housing Element, the adoption which the City Council determined will not adversely impact the public health, safety and welfare. For these reasons, adoption of this Ordinance will not adversely affect the public health, safety, and welfare.
SECTION 4. Code Amendment. Section 17.24.070 of Title 17 of the San Clemente Municipal Code is hereby amended to read in its entirety as follows:
“Section 17.24.070 - Density Bonuses and Other Affordable Housing Incentives
A. Purpose. The purpose of this Section is to allow density bonuses and other affordable housing incentives to qualifying projects in accordance with State law.
B. Density Bonus and Affordable Housing Incentives. The density bonuses and other affordable housing incentives required by State law, including, but not limited to, Government Code Section 65915 et seq., shall be available to applicants on the terms and conditions specified in State law.” SECTION 5. Severability. If any provision of this Ordinance or its application to any person or circumstance is held invalid by a court of competent jurisdiction, such invalidity has no effect on the other provisions or applications of the Ordinance that can be given effect without the invalid provision or application, and to this extent, the provisions of this Ordinance are severable. The City Council declares that it would have adopted this Ordinance irrespective of the invalidity of any portion thereof.
SECTION 6. Publication. The City Clerk shall certify to the adoption of this Ordinance and cause it, or a summary of it, to be published once within 15 days of adoption in a newspaper of general circulation printed and published within the City of San Clemente, and shall post a certified copy of this Ordinance, including the vote for and against the same, in the Office of the City Clerk in accordance with California Government Code, section 36933.
SECTION 7. Records. The documents and materials associated with this Ordinance that constitute the record of proceedings on which the City Council's findings and determinations are based are located at City Hall, 910 Calle Negocio, San Clemente, CA 92673.
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SECTION 7. Effective Date. This Ordinance shall become effective 30 days after its adoption.
APPROVED AND ADOPTED this _____ day of _________ , 2022.
ATTEST:
_______________________________ __________________________ Laura Campagnolo, City Clerk Chris Duncan, Mayor
APPROVED AS TO FORM:
__________________________
Scott Smith, City Attorney
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF SAN CLEMENTE )
I, Laura Campagnolo, City Clerk of the City of San Clemente, California, hereby certify that Ordinance No. _______ having been regularly introduced at the meeting of _______________________, was again introduced, the reading in full thereof unanimously waived, and duly passed and adopted at a regular meeting of the City Council held on the _____day of _____________, _______, and said ordinance was adopted by the following vote:
AYES:
NOES:
ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of ______________________, ________.
__________________________
Laura Campagnolo, City Clerk
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ORDINANCE NO. 1741
AN ORDINANCE OF THE CITY COUNCIL OF SAN
CLEMENTE, CALIFORNIA AMENDING SECTION
17.56.100 OF THE SAN CLEMENTE MUNICIPAL
CODE TO COMPLY WITH ASSEMBLY BILL 139
REGARDING PARKING REQUIREMENTS FOR
EMERGENCY SHELTERS AND FINDING THE
ORDINANCE NOT SUBJECT TO THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA)
WHEREAS, on November 1, 2016, the City Council of the City of San Clemente (“City”) adopted Ordinance No. 1634; and
WHEREAS, Ordinance No. 1634 amended Chapter 17.56 (Overlay Districts and Standards) of the San Clemente Municipal Code (“SCMC”) to establish a new zoning overlay designation known as the “SB 2 Overlay” zone or district (hereafter referred to as the “SB 2 Overlay Zone”); and
WHEREAS, in accordance with California Senate Bill 2, the City allows emergency shelters within the SB 2 Overlay Zone by right so long as each shelter complies with specified operational and development standards (collectively the “Emergency Shelter Standards”); and
WHEREAS, the Emergency Shelter Standards are codified in SCMC Section
17.56.100. Among other things, they require shelters to provide on-site parking at a ratio of not less than one vehicle space per five beds; and
WHEREAS, on September 26, 2019, the Governor approved California Assembly Bill 139, entitled the “Emergency and Transitional Housing Act of 2019” (“AB 139”); and WHEREAS, following AB 139, cities may require emergency shelters to provide sufficient on-site parking to accommodate all staff working in the emergency shelter, provided that the standards do not require more parking for emergency shelters than other residential or commercial uses in the same zone; and WHEREAS, the City’s draft Sixth Cycle Housing Element (covering 2021 – 2029) provides that the City will amend the Emergency Shelter Standards to establish on-site parking requirements based on staffing level only. This ordinance (the “Ordinance) so amends the Emergency Shelter Standards; and
WHEREAS, on November 2, 2022, the Planning Commission conducted a duly noticed public hearing to consider the staff report, recommendations by staff, and public testimony concerning the Ordinance. Following the public hearing, the Planning Commission voted to forward the Ordinance to the City Council with a recommendation in favor of its adoption; and
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WHEREAS, on November 23, 2022, the City gave public notice of a City Council public hearing to be held to consider this Ordinance by advertisement in a newspaper of general circulation; and
WHEREAS, on December 6, 2022, the City Council conducted a duly noticed public hearing to consider the Ordinance, including: (1) the public testimony and agenda reports prepared in connection with the Ordinance; (2) the policy considerations discussed therein; and (3) the consideration and recommendation of the Planning Commission; and
WHEREAS, all legal prerequisites to the adoption of the Ordinance have occurred.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, DOES ORDAIN AS FOLLOWS:
SECTION 1. Incorporation of Recitals. The recitals above are true and correct and are hereby adopted as findings as if fully set forth herein.
SECTION 2. CEQA. The City Council finds that this Ordinance is not a “project” subject to the California Environmental Quality Act (CEQA). The Ordinance does not qualify as a project because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, § 15378, subd. (a).) The language merely adjusts the on-site parking requirements for emergency shelters to comply with recent changes in State law. In the alternative, the City Council finds that the Ordinance falls within the “common sense” exemption set forth in State CEQA Guidelines section 15061, subdivision (b)(3), which exempts activity from CEQA where “it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” Here, it can be seen with certainty that there is no possibility that the Ordinance may have a significant effect on the environment because the Ordinance simply updates the on-site parking requirements for emergency shelters to comply with State law. The Ordinance will not result in any development or in any new activity with the potential to impact the environment.
SECTION 3. Required Findings. In accordance with subsection (F) of San Clemente Municipal Code section 17.16.040, the City Council hereby makes the following findings:
1. General Plan. This Ordinance’s amendments to San Clemente Municipal Code Section 17.56.100 are consistent with the City’s adopted General Plan. Specifically, Land Use Element Policy LU-1.01 provides that the City should accommodate the development of a variety of housing types, styles and densities. This Ordinance is consistent with—and effectuates—Policy LU-1.01 by accommodating the development of emergency shelters through reducing the required on-site parking for this use (previously, the on-site parking requirement was one space for every five beds; it’s now based solely on each shelter’s specific staffing needs). 119
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Furthermore, this Ordinance is consistent with, and in furtherance of, the General Plan as it implements a component of the City’s Sixth Cycle Housing Element—which, in relevant part, provides that the City will amend the SB 2 Overlay Zone’s parking requirements to comply with AB 139.
2. Health, Safety, and Welfare. Adoption of the Ordinance will not adversely affect the public health, safety, and welfare as it simply updates the San Clemente Municipal Code to comply with state law requirements governing on-site parking requirements for emergency shelters. Adoption of this Ordinance is also consistent with—and contemplated by—the City’s Sixth Cycle Housing Element, the adoption which the City Council determined will not adversely impact the public health, safety and welfare. For these reasons, adoption of this Ordinance will not adversely affect the public health, safety, and welfare.
SECTION 4. Code Amendment. Subsection (D)(5) of Section 17.56.100 of the San Clemente Municipal Code is hereby amended to read in its entirety as follows (additions shown in underline and deletions shown in strikethrough):
“Parking. Subject to Government Code Section 65583(a)(4)(A)(ii), on-site parking shall be supplied at a ratio of not less than one space for every employee in the largest shift. On-site parking shall be supplied at a ratio of not less than one vehicle space per five beds. Parking spaces shall be designed to meet City standards. Enclosed, secure bicycle parking shall be provided on-site at the ratio of not less than one bicycle parking space per ten beds.”
SECTION 5. Publication. The City Clerk shall certify to the adoption of this Ordinance and cause it, or a summary of it, to be published once within 15 days of adoption in a newspaper of general circulation printed and published within the City of San Clemente, and shall post a certified copy of this Ordinance, including the vote for and against the same, in the Office of the City Clerk in accordance with California Government Code, section 36933.
SECTION 6. Records. The documents and materials associated with this Ordinance that constitute the record of proceedings on which the City Council's findings and determinations are based are located at City Hall, 910 Calle Negocio, San Clemente, CA 92673.
SECTION 7. Severability. If any provision of this ordinance or its application to any person or circumstance is held invalid, such invalidity has no effect on the other provisions or applications of the ordinance that can be given effect without the invalid provision or application, and to this extent, the provisions of this ordinance are severable.
The City Council declares that it would have adopted this ordinance irrespective of the invalidity of any portion thereof.
SECTION 8. Effective Date. This Ordinance shall become effective 30 days after its adoption.
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APPROVED AND ADOPTED this ____ day of _________ , 2022.
ATTEST:
_______________________________ __________________________ Laura Campagnolo, City Clerk Chris Duncan, Mayor
APPROVED AS TO LEGAL FORM:
__________________________________
Scott C. Smith, City Attorney
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF SAN CLEMENTE )
I, Laura Campagnolo, City Clerk of the City of San Clemente, California, hereby certify that Ordinance No. _______ having been regularly introduced at the meeting of _______________________, was again introduced, the reading in full thereof unanimously waived, and duly passed and adopted at a regular meeting of the City Council held on the _____day of _____________, _______, and said ordinance was adopted by the following vote:
AYES:
NOES:
ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of ______________________, ________.
__________________________
Laura Campagnolo, City Clerk
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ORDINANCE NO. 1742
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN
CLEMENTE, CALIFORNIA AMENDING SECTION 17.28.270 OF THE
SAN CLEMENTE MUNICIPAL CODE GOVERNING ACCESSORY
DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS TO
COMPLY WITH CHANGES IN STATE LAW AND FINDING THE ACTION
TO BE EXEMPT FROM CEQA (CEQA)
WHEREAS, the City of San Clemente, California (“City”) is a municipal corporation, duly organized under the California Constitution and laws of the State of California; and
WHEREAS, the Planning and Zoning Law authorizes local agencies to act by ordinance to provide for the creation and regulation of accessory dwelling units (“ADUs”) and junior accessory dwelling units (“JADUs”); and
WHEREAS, in 2019, the California Legislature approved, and the Governor signed into law a number of bills (“2019 ADU Laws”) that, among other things, amended Government Code section 65852.2 and 65852.22 to impose new limits on local authority to regulate ADUs and JADUs; and
WHEREAS, in September 2020, the California Legislature approved, and the Governor signed into law, Assembly Bill 3182 (“AB 3182”); and WHEREAS, AB 3182, among other things, amended Government Code section 65852.2 to expand the scenarios under which the City must allow certain ADUs and JADUs with only a building permit; and
WHEREAS, in September 2021, the California Legislature approved, and the Governor signed into law, Assembly Bill 345 (“AB 345”); and WHEREAS, AB 345 requires cities to allow the separate sale or conveyance of certain ADUs that satisfy the conditions set forth in Government Code section 65852.26.
Such conditions include, among other things, that the ADU or the primary dwelling was constructed by a qualified nonprofit and the ADU is sold to a qualified low-income buyer; and
WHEREAS, in September 2022, the Legislature approved, and the Governor signed into law, Assembly Bill 2221 and Senate Bill 897 (“AB 2221” and “SB 897,” respectively); and
WHEREAS, AB 2221 and SB 897 imposed further restrictions on local authority to regulate ADUs and JADUs, including with respect to height limits, setbacks, application review and denial procedures, unpermitted structures, and JADU configurations; and 122
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Ordinance No. 22-
2 WHEREAS, the City’s regulations governing ADUs and JADUs are provided in Section 17.28.270 of the San Clemente Municipal Code (“SCMC”); and WHEREAS, the City last updated SCMC Section 17.28.270 via Ordinance No. 1707, which was adopted on February 2, 2021; and
WHEREAS, additional amendments to SCMC Section 17.28.270 are necessary to comply with the above legislation and HCD’s guidance on the same. This ordinance (“Ordinance”) so updates SCMC Section 17.28.270; and
WHEREAS, on October 21, 2022, the City gave public notice of a Planning Commission public hearing to be held to consider this Ordinance by advertisement in a newspaper of general circulation; and
WHEREAS, on November 2, 2022, the Planning Commission held a duly-noticed public hearing to consider the staff report, recommendations by staff, and public testimony concerning this Ordinance. Following the public hearing, the Planning Commission voted to forward the Ordinance to the City Council with a recommendation in favor of its adoption; and
WHEREAS, on November 23, 2022 the City gave public notice of a City Council public hearing to be held to consider this Ordinance by advertisement in a newspaper of general circulation; and
WHEREAS, on December 6, 2022, the City Council held a duly-noticed public hearing to consider the Ordinance, including: (1) the public testimony and agenda reports prepared in connection with the Ordinance, (2) the policy considerations discussed therein, and (3) the consideration and recommendation by the City’s Planning Commission; and
WHEREAS, all legal prerequisites to the adoption of the Ordinance have occurred.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. The foregoing Recitals are true and correct and are incorporated herein by this reference.
Section 2. CEQA. Under California Public Resources Code section 21080.17, the California Environmental Quality Act (“CEQA”) does not apply to the adoption of an ordinance by a city or county implementing the provisions of section 65852.2 of the Government Code, which is California’s ADU law and which also regulates JADUs, as defined by section 65852.22. Therefore, the proposed ordinance is statutorily exempt from CEQA in that the proposed ordinance implements the State’s ADU law.
Section 3. Required Findings. In accordance with subsection (F) of San 123
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Ordinance No. 22-
3 Clemente Municipal Code section 17.16.040, the Planning Commission hereby makes the following findings:
1. General Plan. This Ordinance is, as a matter of law, consistent with the City’s General Plan pursuant to Government Code Section 65852.2(a)(1)(C).
2. Health, Safety, and Welfare. Adoption of the Ordinance will not adversely affect the public health, safety, and welfare as it simply updates the San Clemente Municipal Code to comply with state law requirements governing the construction of ADUs and JADUs in the City. Adoption of this Ordinance is also consistent with—and contemplated by—the City’s Sixth Cycle Housing Element, the adoption which the City Council determined will not adversely impact the public health, safety and welfare. For these reasons, adoption of this Ordinance will not adversely affect the public health, safety, and welfare.
Section 4. Code Amendments. Section 17.28.270 of the San Clemente Municipal Code is hereby amended to read as set forth in Exhibit “A,” attached hereto and incorporated herein.
Section 5. Effective Date. This Ordinance takes effect 30 days following its adoption.
Section 6. Submittal to HCD. The City Clerk shall submit a copy of this Ordinance to the Department of Housing and Community Development within 60 days after adoption.
Section 7. Custodian of Records. The documents and materials that constitute the record of proceedings on which this Ordinance is based are located at the City Clerk’s office located at 910 Calle Negocio, San Clemente, CA 92673. The custodian of these records is the City Clerk.
Section 8. Severability. If any section, sentence, clause or phrase of this Ordinance or the application thereof to any entity, person or circumstance is held for any reason to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The City Council hereby declares that they would have adopted this Ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.
Section 9. Certification. The City Clerk shall certify to the adoption of this Ordinance and cause it, or a summary of it, to be published once within 15 days of adoption in a newspaper of general circulation printed and published within the City of San Clemente, and shall post a certified copy of this Ordinance, including the vote for and 124
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Ordinance No. 22-
4 against the same, in the Office of the City Clerk in accordance with California Government Code section 36933.
PASSED, APPROVED, AND ADOPTED by the City Council of San Clemente, California, on the _____ day of ___________ 2022.
CHRIS DUNCAN, MAYOR
ATTEST:
LAURA CAMPAGNOLO
CITY CLERK
APPROVED AS TO FORM:
SCOTT C. SMITH
CITY ATTORNEY
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF SAN CLEMENTE )
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Ordinance No. 22-
5 I, Laura Campagnolo, City Clerk of the City of San Clemente, do hereby certify that the foregoing Ordinance No. _______ was duly introduced and placed upon its first reading at a regular meeting of the City Council on the ___ day of ________, 2022, and thereafter, said Ordinance was duly adopted and passed at a regular meeting of the City Council on the ___ day of _____ 2022, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
LAURA CAMPAGNOLO
CITY CLERK
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17.28.270 Accessory Dwelling Units
A. Purpose and Intent. The purpose and intent of this section is to allow and regulate accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) within the City. The regulations in this section are intended to comply with California Government Code §§ 65852.2 and 65852.22, as they may be amended.
B. Effect of Conforming. An ADU or JADU that conforms to the standards in this section will not be:
1. Deemed to be inconsistent with the City’s general plan and zoning designation for the lot on which the ADU or JADU is located.
2. Deemed to exceed the allowable density for the lot on which the ADU or JADU is located.
3. Considered in the application of any local ordinance, policy, or program to limit residential growth.
4. Required to correct a nonconforming zoning condition, as defined in subsection C.7 below. This does not prevent the City from enforcing compliance with applicable building standards in accordance with Health and Safety Code section 17980.12.
C. Definitions. As used in this section, terms are defined as follows:
1. "Accessory dwelling unit" or "ADU" means an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. An accessory dwelling unit also includes the following:
a. An efficiency unit, as defined by California Health and Safety Code § 17958.1; and
b. A manufactured home, as defined by California Health and Safety Code § 18007.
2. “Accessory structure" means a structure that is accessory and incidental to a dwelling located on the same lot.
3. "Complete independent living facilities" means permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multi-family dwelling is or will be situated.
4. "Efficiency kitchen" means a kitchen that includes all of the following:
a. A cooking facility with appliances.
b. A food preparation counter and storage cabinets that are of a reasonable size in relation to the size of the JADU.
5. "Junior accessory dwelling unit" or "JADU" means a residential unit that satisfies all of the following:
a. It is no more than 500 square feet in size.
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b. It is contained entirely within an existing or proposed single-family structure. An enclosed use within the residence, such as an attached garage, is considered to be a part of and contained within the singlefamily structure. c. It includes its own separate sanitation facilities or shares sanitation facilities with the existing or proposed single-family structure. d. If the unit does not include its own separate bathroom, then it contains an interior entrance to the main living area of the existing or proposed single-family structure in addition to an exterior entrance that is separate from the main entrance to the primary dwelling. e. It includes an efficiency kitchen, as defined in subsection C.4 above.
6. "Living area" means the interior habitable area of a dwelling unit, including basements and attics, but does not include a garage or any accessory structure.
7. "Nonconforming zoning condition" means a physical improvement on a property that does not conform with current zoning standards.
8. "Passageway" means a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the ADU or JADU.
9. "Proposed dwelling" means a dwelling that is the subject of a permit application and that meets the requirements for permitting.
10. "Public transit" means a location, including, but not limited to, a bus stop or train station or SC Rides, where the public may access buses, trains, subways, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public.
11. "Tandem parking" means that two or more automobiles are parked on a driveway or in any other location on a lot, lined up behind one another.
D. Permit Procedures. The following approvals apply to ADUs and JADUs under this section:
1. Building-Permit Only. If an ADU or JADU complies with each of the general requirements in subsection E below, it is allowed with only a building permit in the following scenarios:
a. Converted on Single-family Lot: One ADU as described in this subsection D.1.a and one JADU on a lot with a proposed or existing single-family dwelling on it, where the ADU or JADU:
i. Is either: within the space of a proposed single-family dwelling; within the existing space of an existing single-family dwelling; or (in the case of an ADU only) within the existing space of an accessory structure, plus up to 150 additional square feet if the expansion is limited to accommodating ingress and egress; and ii. Has exterior access that is independent of that for the singlefamily dwelling; and 128
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iii. Has side and rear setbacks sufficient for fire and safety, as dictated by applicable building and fire codes; and
iv. The JADU complies with the requirements of Government Code Section 65852.22.
b. Limited Detached on Single-family Lot: One detached, newconstruction ADU on a lot with a proposed or existing single-family dwelling (in addition to any JADU that might otherwise be established on the lot under subsection D.1.a above), if the detached ADU satisfies each of the following limitations:
i. The side- and rear-yard setbacks are at least four feet. ii. The total floor area is 800 square feet or smaller. iii. The peak height above grade does not exceed the applicable height limit in subsection E.2 below.
c. Converted on Multifamily Lot: One or more ADUs within portions of existing multi-family dwelling structures that are not used as livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages, if each converted ADU complies with state building standards for dwellings. Under this subsection D.1.c, at least one converted ADU is allowed within an existing multi-family dwelling, up to a quantity equal to 25 percent of the existing multi-family dwelling units.
d. Limited Detached on Multifamily Lot: No more than two detached ADUs on a lot that has an existing or proposed multi-family dwelling if each detached ADU satisfies both of the following limitations:
i. The side- and rear-yard setbacks are at least four feet. If the existing multifamily dwelling has a rear or side yard setback of less than four feet, the City will not require any modification to the multifamily dwelling as a condition of approving the ADU. ii. The peak height above grade does not exceed the applicable height limit provided in subsection E.2 below.
2. ADUs that Require an ADU Permit.
a. Except as allowed under subsection D.1 above, no ADU may be created without a building permit and an ADU permit in compliance with the standards set forth in subsections E and F below. b. The City may charge a fee to reimburse it for costs incurred in processing ADU permits, including the costs of adopting or amending the City's ADU ordinance. The ADU permit processing fee is determined the Planning Division and approve by the City Council by resolution.
3. Application Process and Timing.
a. An ADU permit application is considered ministerially, without any discretionary review or a hearing.
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b. The City must approve or deny an application to create an ADU or JADU within 60 days from the date that the City receives a completed application. If the City has not approved or denied the completed application within 60 days, the application is deemed approved unless either:
i. The applicant requests a delay, in which case the 60-day time period is tolled for the period of the requested delay, or ii. When an application to create an ADU or JADU is submitted with a permit application to create a new single-family or multifamily dwelling on the lot, the City may delay acting on the permit application for the ADU or JADU until the City acts on the permit application to create the new single-family or multifamily dwelling, but the application to create the ADU or JADU will still be considered ministerially without discretionary review or a hearing.
c. If the City denies an application to create an ADU or JADU, the City must provide the applicant with comments that include, among other things, a list of all the defective or deficient items and a description of how the application may be remedied by the applicant. Notice of the denial and corresponding comments must be provided to the applicant within the 60-day time period established by subsection D.3.b above.
d. A demolition permit for a detached garage that is to be replaced with an ADU is reviewed with the application for the ADU and issued at the same time.
4. Impact and Utility Fees. The following requirements apply to all ADUs and JADUs that are approved under subsections D.1 or D.2 above. a. Impact Fees.
i. No impact fee is required for an ADU that is less than 750 square feet in size. For purposes of this subsection D.4.a, "impact fee" means a "fee" under the Mitigation Fee Act (Government Code § 66000(b)) and a fee under the Quimby Act (Government Code § 66477). “Impact fee” here does not include any connection fee or capacity charge for water or sewer service.
ii. Any impact fee that is required for an ADU that is 750 square feet or larger in size must be charged proportionately in relation to the square footage of the primary dwelling unit. (E.g., the floor area of the ADU, divided by the floor area of the primary dwelling, times the typical fee amount charged for a new dwelling.)
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b. Utility Fees.
i. If an ADU is constructed with a new single-family home, a separate utility connection directly between the ADU and the utility and payment of the normal connection fee and capacity charge for a new dwelling are required.
ii. Except as described in subsection D.4.b.i, converted ADUs on a single-family lot that are created under subsection D.1.a above are not required to have a new or separate utility connection directly between the ADU and the utility. Nor is a connection fee or capacity charge required.
iii. Except as described in subsection D.4.b.i, all ADUs that are not covered by subsection D.4.b.ii require a new, separate utility connection directly between the ADU and the utility. (a) The connection is subject to a connection fee or
capacity charge that is proportionate to the burden
created by the ADU, based on either the floor area or
the number of drainage-fixture units (DFU) values, as
defined by the Uniform Plumbing Code, upon the water
or sewer system.
(b) The portion of the fee or charge that is charged by the City may not exceed the reasonable cost of providing
this service.
E. General ADU and JADU Requirements. The following requirements apply to all ADUs and JADUs that approved under subsections D.1 and D.2 above:
1. Zoning.
a. An ADU or JADU subject only to a building permit under subsection D.1 above may be created on a lot in a residential or mixed-use zone. b. An ADU subject to an ADU permit under subsection D.2 above may be created on a lot that is zoned to allow single-family dwelling residential use or multi-family dwelling residential use.
2. Height.
a. Except as otherwise provided by subsections E.2.b and E.2.c below, a detached ADU created on a lot with an existing or proposed single family or multifamily dwelling unit may not exceed 16 feet in height. b. A detached ADU may be up to 18 feet in height if it is created on a lot with an existing or proposed single family or multifamily dwelling unit that is located within one-half mile walking distance of a major transit stop or a high quality transit corridor, as those terms are defined in Section 21155 of the Public Resources Code, and the ADU may be up to two additional feet in height (for a maximum of 20 feet) if necessary to accommodate a roof pitch on the ADU that is aligned with the roof pitch of the primary dwelling unit. 131
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c. A detached ADU created on a lot with an existing or proposed multifamily dwelling that has more than one story above grade may not exceed 18 feet in height.
d. An ADU that is attached to the primary dwelling may not exceed 25 feet in height or the height limitation imposed by the underlying zone that applies to the primary dwelling, whichever is lower.
Notwithstanding the foregoing, ADUs subject to this subsection E.2.d may not exceed two stories.
e. For purposes of this subsection E.2, height is measured above existing legal grade to the peak of the structure.
3. Fire Sprinklers.
a. Fire sprinklers are required in an ADU if sprinklers are required in the primary residence.
b. The construction of an ADU does not trigger a requirement for fire sprinklers to be installed in the existing primary dwelling.
4. Rental Term. No ADU or JADU may be rented for a term that is shorter than 30 days. This prohibition applies regardless of when the ADU or JADU was created.
5. No Separate Conveyance. An ADU or JADU may be rented, but, except as otherwise provided in Government Code Section 65852.26, no ADU or JADU may be sold or otherwise conveyed separately from the lot and the primary dwelling (in the case of a single-family lot), or from the lot and all of the dwellings (in the case of a multi-family lot).
6. Septic System. If the ADU or JADU will connect to an onsite waste-water treatment system, the owner must include with the application a percolation test completed within the last five years or, if the percolation test has been recertified, within the last 10 years.
7. Owner Occupancy.
a. An ADU that is permitted after January 1, 2020, but before January 1, 2025, is not subject to any owner-occupancy requirement. b. Unless applicable law requires otherwise, all ADUs that are permitted on or after January 1, 2025 are subject to an owneroccupancy requirement. A natural person with legal or equitable title to the property must reside on the property as the person's legal domicile and permanent residence.
c. As required by applicable law, all JADUs are subject to an owneroccupancy requirement. A natural person with legal or equitable title to the property must reside on the property, in either the primary dwelling or JADU, as the person's legal domicile and permanent residence. However, the owner-occupancy requirement in this subsection E.7.c does not apply if the property is entirely owned by another governmental agency, land trust, or housing organization. 132
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8. Deed Restriction. Prior to issuance of a building permit for an ADU or JADU, a deed restriction must be recorded against the title of the property in the County Recorder's office and a copy filed with the Planning Division.
The deed restriction must run with the land and bind all future owners. The form of the deed restriction will be provided by the City and must provide that:
a. Except as otherwise provided in Government Code Section 65852.26, the ADU or JADU may not be sold separately from the primary dwelling.
b. The ADU or JADU is restricted to the approved size and to other attributes allowed by this section.
c. The deed restriction runs with the land and may be enforced against future property owners.
d. The deed restriction may be removed if the owner eliminates the ADU or JADU, as evidenced by, for example, removal of the kitchen facilities. To remove the deed restriction, an owner may make a written request of the Planning Division, providing evidence that the ADU or JADU has in fact been eliminated. The Planning Division may then determine whether the evidence supports the claim that the ADU or JADU has been eliminated. Appeal may be taken from the Planning Division's determination consistent with other provisions of this code. If the ADU or JADU is not entirely physically removed, but is only eliminated by virtue of having a necessary component of an ADU or JADU removed, the remaining structure and improvements must otherwise comply with all applicable legal requirements, including those of the Zoning Code.
e. The deed restriction is enforceable by the Planning Division for the benefit of the City. Failure of the property owner to comply with the deed restriction may result in legal action against the property owner, and the City is authorized to obtain any remedy available to it at law or equity, including, but not limited to, obtaining an injunction enjoining the use of the ADU or JADU in violation of the recorded restrictions or abatement of the illegal unit.
9. Building & Safety.
a. Must comply with building code. Subject to subsection E.9.b below, all ADUs and JADUs must comply with all local building code requirements.
b. No change in occupancy. Construction of an ADU does not constitute a Group R occupancy change under the local building code, as described in Section 310 of the California Building Code, unless the building official or Code Enforcement Division officer makes a written finding based on substantial evidence in the record that the construction of the ADU could have a specific, adverse impact on public health and safety. Nothing in this subsection E.9.b 133
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prevents the City from changing the occupancy code of a space that was uninhabitable space or that was only permitted for
nonresidential use and was subsequently converted for residential use in accordance with this section.
F. Development Standards for ADUs that Require an ADU Permit. The following requirements apply only to ADUs that require an ADU permit under subsection D.2 above.
1. Passageway. No passageway is required for an ADU.
2. Parking.
a. Generally. One off-street parking space is required for each ADU.
The parking space may be provided in setback areas or as tandem parking.
b. No Replacement. When a garage, carport, or other covered parking structure is demolished in conjunction with the construction of an ADU or converted to an ADU, those off-street parking spaces are not required be replaced.
c. Exceptions. No parking under subsection F.2.a is required in the following situations:
i. The ADU is located within one-half mile walking distance of public transit stops, as defined in subsection C.10 above. ii. The ADU is located within an architecturally and historically significant historic district.
iii. The ADU is part of the proposed or existing primary residence or an accessory structure under subsection D.1.a above. iv. When on-street parking permits are required but not offered to the occupant of the ADU.
v. When there is a city-sanctioned, posted car-share pick-up or drop-off location within one block of the ADU.
vi. When the permit application to create an ADU is submitted with an application to create a new single-family or new multifamily dwelling on the same lot, provided that the ADU or the lot satisfies any other criteria listed in subsections F.2.c.i through F.2.c.v above.
3. Setbacks. An ADU that is subject to this subsection F must conform to:
a. A 20-foot of the front-yard setback. In addition, the ADU may not be closer than the living area of the primary dwelling to the front property line. This subsection F.3.a is subject to subsection F.4.c below b. Four-foot side- and rear-yard setbacks.
c. A detached ADU must be a minimum of five feet from the primary building, measured from the closest point of the ADU (whether wall, balcony, eave, etc.) to the closest point of the primary dwelling. 134
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d. No setback if the ADU is constructed in the same location and to the same dimensions as an existing accessory building.
4. Maximum Size.
a. The maximum size of an attached or detached ADU subject to this subsection F is 850 square feet for a studio or one-bedroom unit and 1,000 square feet for a unit with two or more bedrooms. b. An attached ADU that is created on a lot with an existing primary dwelling is further limited to 50 percent of the floor area of the existing primary dwelling.
c. Application of other development standards in this subsection F, such as lot coverage, might further limit the size of the ADU, but no application of the percent-based size limit in subsection F.4.b, a front setback, or lot coverage limit may require the ADU to be less than 800 square feet.
5. Lot Coverage. No ADU subject to this subsection F may cause the total lot coverage of the lot to exceed 50 percent lot coverage, subject to F.4.c above.
6. Driveway Access. The ADU and primary dwelling must use the same driveway to access the street, unless otherwise required for fire apparatus access as determined by the fire authority.
7. Architecture Review.
a. The materials and colors of the exterior walls, roof, and windows and doors must match the appearance and architectural design of those of the primary dwelling.
b. The roof slope must match that of the dominant roof slope of the primary dwelling. The dominant roof slope is the slope shared by the largest portion of the roof.
c. The exterior lighting must be limited to down-lights or as otherwise required by the building or fire code.
d. The ADU must have an independent exterior entrance, apart from that of the primary dwelling.
e. The interior horizontal dimensions of an ADU must be at least 10 feet wide in every direction, with a minimum interior wall height of seven feet.
f. Fencing, landscaping, privacy glass, or clerestory windows may be used to provide screening and prevent a direct line of sight to contiguous residential property.
8. Historic Protections. An ADU that is on real property that is on or within 600 feet of real property that is listed in the California Register of Historic Resources must be located so as to not be visible from any public right-ofway. 135
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G. Nonconforming Zoning Code Conditions, Building Code Violations, and Unpermitted Structures.
1. Generally. The City will not deny an ADU or JADU application due to a nonconforming zoning condition, building code violation, or unpermitted structure on the lot that does not present a threat to the public health and safety and that is not affected by the construction of the ADU or JADU.
2. Unpermitted ADUs constructed before 2018.
a. Permit to Legalize. As required by state law, the City may not deny a permit to legalize an existing but unpermitted ADU that was constructed before January 1, 2018, if denial is based on either of the following grounds:
i. The ADU violates applicable building standards, or
ii. The ADU does not comply with the state ADU law
(Government Code section 65852.2) or this ADU ordinance (section 17.28.270).
b. Exceptions.
i. Notwithstanding subsection G.2.a above, the City may deny a permit to legalize an existing but unpermitted ADU that was constructed before January 1, 2018, if the City makes a finding that correcting a violation is necessary to protect the health and safety of the public or of occupants of the
structure.
ii. Subsection G.2.a above does not apply to a building that is deemed to be substandard in accordance with California
Health and Safety Code section 17920.3.
H. Nonconforming ADUs and JADUs and Discretionary Approval. Any proposed ADU or JADU that does not conform to the objective standards set forth in subsections A through G of this section may be allowed by the City with an Architectural Permit, in accordance with the other provisions of this title. 136
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1 ORDINANCE NO. 1743
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SAN CLEMENTE, CALIFORNIA AMENDING VARIOUS
PROVISIONS OF THE SAN CLEMENTE MUNICIPAL CODE
TO ENSURE CONSISTENCY WITH STATE LAW
REGARDING LOW BARRIER NAVIGATION CENTERS
AND FINDING THE ACTION TO BE EXEMPT FROM THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
WHEREAS, the City of San Clemente (“City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, in 2019, the Legislature enacted, and the Governor signed into law, Assembly Bill 101 (“AB 101”); and
WHEREAS, AB 101 added Article 12 to Chapter 3 of the California Government Code (commencing with section 65660). Among other things, AB 101 requires cities to permit specified Low Barrier Navigation Centers (“LBNCs”) by right in areas zoned for mixed use and nonresidential zones where multifamily uses are allowed; and WHEREAS, the ordinance amends Title 17 of the San Clemente Municipal Code (“SCMC”) to update the City’s regulations to comply with AB 101; and WHEREAS, on November 2, 2022, the Planning Commission of the City of San Clemente held a duly noticed public hearing on this ordinance, at which time it considered all evidence presented, both oral and written. Following the public hearing, the Planning Commission voted to forward the Ordinance to the City Council with a recommendation in favor of its adoption; and
WHEREAS, on November 23, 2022, the City gave public notice of a City Council public hearing to be held to consider this ordinance by advertisement in a newspaper of general circulation; and
WHEREAS, on December 6, 2022, the City Council conducted a duly noticed public hearing to consider the ordinance, including: (1) the public testimony and agenda reports prepared in connection with the ordinance; (2) the policy considerations discussed therein; and (3) the consideration and recommendation of the Planning Commission; and WHEREAS, all legal prerequisites to the adoption of the ordinance have occurred.
NOW, THEREFORE, the City Council of the City of San Clemente does ordain as follows:
Incorporation of Recitals. The recitals above are each incorporated by reference and adopted as findings by the City Council. 137
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2 CEQA. The City Council finds that adoption of this ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Alternatively, the adoption of this ordinance is exempt from CEQA because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. (State CEQA Guidelines, § 15061(b)(3).)
Required Findings. In accordance with subsection (F) of San Clemente Municipal Code Section 17.16.040, the City Council hereby makes the following findings:
1. General Plan. This ordinance’s amendments to Title 17 of the San Clemente Municipal Code are consistent with the City’s adopted General Plan. Specifically, Land Use Element Policy LU-1.01 provides that the City should accommodate the development of a variety of housing types, styles and densities. This ordinance is consistent with—and effectuates—Policy LU-1.01 by clarifying that LBNCs are permitted by right in specified areas of the City in accordance with state law. Furthermore, this ordinance is consistent with, and in furtherance of, the General Plan as it implements a component of the City’s Sixth Cycle Housing Element—which, in relevant part, provides that the City will amend the Municipal Code to update its LBNC regulations to comply with AB 101.
2. Health, Safety, and Welfare. Adoption of this ordinance will not adversely affect the public health, safety, and welfare as it simply updates the San Clemente Municipal Code to comply with state law requirements governing the instances where the City must allow LBNCs. The operational requirements provided in subsection (C) of Section 17.28.345 will protect the health, safety, and welfare of LBNC residents and surrounding uses by ensuring LBNCs satisfy the statutory onsite and operational requirements provided in Government Code section 65660 et seq. as well as specified objective local standards (e.g., ensuring qualified LBNC personnel are onsite, ensuring the number of beds is commensurate with the floor area utilized for sleeping purposes etc.). Adoption of this ordinance is also consistent with—and contemplated by—the City’s Sixth Cycle Housing Element, the adoption which the City Council determined will not adversely impact the public health, safety and welfare. For these reasons, adoption of this ordinance will not adversely affect the public health, safety, and welfare.
Code Amendment. Section 17.88.030 (Definitions) of the San Clemente Municipal Code is hereby amended to add a definition for “Low Barrier Navigation Center,” which shall read in its entirety as follows:
138
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3 “Low Barrier Navigation Center” has the same meaning as in California Government Code section 65660(a), as that section is amended from time to time.
Code Amendment. Section 17.28.345, entitled “Low Barrier Navigation Centers,” is hereby added to Chapter 17.28 (Special Uses) of the San Clemente Municipal Code and shall read in its entirety as follows:
“17.28.345 – Low Barrier Navigation Centers
A. Purpose. The purpose of this section is to comply with California Government Code section 65660 et seq. regarding Low Barrier Navigation Centers (hereafter referred to as “LBNCs,” and each singularly an “LBNC”) B. Allowed Zones. LBNCs that comply with the provisions of subsection (C) below are permitted by right in areas zoned for mixed use and nonresidential zones permitting multifamily uses.
C. Operational and Development Standards. LBNCs must comply with all of the following:
1. Separation. No LBNC may be established or operated at any location that is less than 300 feet from another LBNC.
2. Operational Services. As required by Government Code section 65662, each LBNC must satisfy all of the following:
a. It offers services to connect people to permanent
housing through a services plan that identifies services staffing.
b. It is linked to a coordinated entry system, so that staff in the interim facility or staff who co-locate in the facility may conduct assessments and provide services to
connect people to permanent housing. “Coordinated
entry system” means a centralized or coordinated
assessment system developed pursuant to section
576.400(d) or section 578.7(a)(8), as applicable, of
Title 24 of the Code of Federal Regulations, as those
sections read on January 1, 2020, and any related
requirements, designed to coordinate program
participant intake, assessment, and referrals.
c. It complies with Chapter 6.5 (commencing with section 8255) of Division 8 of the Welfare and Institutions
Code.
d. It has a system for entering information regarding client stays, client demographics, client income, and exit
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4 destination through the local Homeless Management
Information System as defined by section 578.3 of Title 24 of the Code of Federal Regulations.
3. On-Site Personnel. Each LBNC must provide both of the following:
a. At least one qualified on-site manager at all times for each 20 occupants; and
b. At least one qualified attendant at all times for each 20 occupants.
4. Floor Area; Beds. The maximum number of beds per LBNC may not exceed one bed for every 50 square feet of floor area used for sleeping purposes.
5. Objective Development Standards. Low Barrier Navigation Centers must comply with all objective site, design, and construction standards included in Title 15 (Buildings and Construction), Title 16 (Subdivisions), and Title 17 (Zoning) of this Code as well as any objective design guidelines included in applicable specific plans or otherwise adopted by the City Council.
D. Ministerial Review; Application Procedures. LBNC applications will be reviewed and processed ministerially—without discretionary review or a hearing—in accordance with the timelines set forth in Government Code section 65664, as it may be amended from time to time.
E. Sunset.
1. Subject to subsection (E)(2) below, this section shall remain in effect until January 1, 2027, and as of that date is repealed.
2. If the Legislature amends Government Code section 65668 to extend the effective date of Government Code section 65660 et seq., then this section shall remain in effect until the date on which Government Code section 65660 et seq. is repealed.”
Certification. The city clerk shall certify to the adoption of this ordinance and cause it, or a summary of it, to be published once within 15 days of adoption in a newspaper of general circulation printed and published within the City of San Clemente, and shall post a certified copy of this ordinance, including the vote for and against the same, in the Office of the City Clerk in accordance with California Government Code section 36933.
Record of Proceedings. The documents and materials associated with this ordinance that constitute the record of proceedings on which the City Council’s 140
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5 findings and determinations are based are located at City Hall, 910 Calle Negocio, San Clemente, CA 92673.
Severability. If any provision of this ordinance or its application to any person or circumstance is held invalid by a court of competent jurisdiction, such invalidity has no effect on the other provisions or applications of the ordinance that can be given effect without the invalid provision or application, and to this extent, the provisions of this ordinance are severable. The City Council declares that it would have adopted this ordinance irrespective of the invalidity of any portion thereof.
Effective Date. This ordinance shall become effective 30 days after its adoption.
APPROVED AND ADOPTED this _____ day of _____, 2022.
ATTEST:
_______________________________ ___________________________ City Clerk of the City of Mayor of the City of San
San Clemente, California Clemente, California
APPROVED AS TO LEGAL FORM
_______________________________
City Attorney
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF SAN CLEMENTE )
I, Laura Campagnolo, City Clerk of the City of San Clemente, California, hereby certify that Ordinance No. _______ having been regularly introduced at the meeting of __________ __, 2022, was again introduced, the reading in full thereof unanimously waived, and duly passed and adopted at a regular meeting of the City Council held on the _____ day of __________, 2022, and said ordinance was adopted by the following vote:
AYES:
NOES:
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6 ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of __________, 2022. __________________________
CITY CLERK of the City of
San Clemente, California
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ORDINANCE NO. 1744
AN ORDINANCE OF THE CITY COUNCIL OF SAN
CLEMENTE, CALIFORNIA AMENDING VARIOUS
PROVISIONS OF THE SAN CLEMENTE
MUNICIPAL CODE TO ENSURE CONSISTENCY
WITH STATE LAW REGARDING SUPPORTIVE
AND TRANSITIONAL HOUSING AND FINDING THE
ACTION TO BE EXEMPT FROM THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA)
WHEREAS, the City of San Clemente (“City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, in recent years, the State of California has preempted local regulation of certain residential uses, including supportive housing and transitional housing; and WHEREAS, state law defines “supportive housing” as housing with no limit on length of stay, that is occupied by homeless individuals or families, and that is linked to onsite or offsite services that assist the resident(s) in retaining the housing, improving their health status, and maximizing their ability to live and, when possible, work in the community; and
WHEREAS, state law defines “transitional housing” as buildings configured as rental housing developments that are operated under program requirements requiring the termination of assistance and recirculating of the assisted unit to another eligible program recipient at a predetermined future point in time that is no less than six months from the beginning of the assistance; and
WHEREAS, state law requires cities to permit supportive housing as a use by right in zones where multifamily and mixed-uses are permitted if the proposed housing development meets specified statutory requirements (e.g., development size, affordability restrictions, specified percentage of floor area devoted to onsite supportive services); and WHEREAS, state law also requires cities to treat transitional housing and supportive housing as residential uses subject to the restrictions that apply to other residential dwellings of the same type in the same zone; and WHEREAS, the ordinance (“Ordinance”) amends Title 17 of the San Clemente Municipal Code (“SCMC”) to update the City’s regulations governing supportive and transitional housing to comply with the above state law requirements; and WHEREAS, on November 2, 2022, the Planning Commission conducted a duly noticed public hearing to consider the staff report, recommendations by staff, and public testimony concerning the Ordinance. Following the public hearing, the Planning Commission voted to forward the Ordinance to the City Council with a recommendation in favor of its adoption; and
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WHEREAS, on November 23, 2022, the City gave public notice of a City Council public hearing to be held to consider this Ordinance by advertisement in a newspaper of general circulation; and
WHEREAS, on December 6, 2022, the City Council conducted a duly noticed public hearing to consider the Ordinance, including: (1) the public testimony and agenda reports prepared in connection with the Ordinance; (2) the policy considerations discussed therein; and (3) the consideration and recommendation of the Planning Commission; and
WHEREAS, all legal prerequisites to the adoption of the Ordinance have occurred.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, DOES ORDAIN AS FOLLOWS:
SECTION 1. Incorporation of Recitals. The recitals above are true and correct and are hereby adopted as findings as if fully set forth herein.
SECTION 2. CEQA. The City Council finds that adoption of this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Alternatively, the adoption of this Ordinance is exempt from CEQA because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. (State CEQA Guidelines, § 15061(b)(3).)
SECTION 3. Required Findings. In accordance with subsection (F) of San Clemente Municipal Code section 17.16.040, the City Council hereby makes the following findings:
1. General Plan. This Ordinance’s amendments to Title 17 of the San Clemente Municipal Code are consistent with the City’s adopted General Plan. Specifically, Land Use Element Policy LU-1.01 provides that the City should accommodate the development of a variety of housing types, styles and densities. This Ordinance is consistent with—and effectuates—Policy LU-1.01 by clarifying that supportive housing and transitional housing are permitted by right in specified areas of the City in accordance with State law. Furthermore, this Ordinance is consistent with, and in furtherance of, the General Plan as it implements a component of the City’s Sixth Cycle Housing Element—which, in relevant part, provides that the City will amend the Municipal Code to comply with recent changes in State housing laws.
2. Health, Safety, and Welfare. Adoption of the Ordinance will not adversely affect the public health, safety, and welfare as it simply updates the San 144
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Clemente Municipal Code to comply with state law requirements governing the instances where the City must permit supportive and transitional housing. Adoption of this Ordinance is also consistent with—and contemplated by—the City’s Sixth Cycle Housing Element, the adoption which the City Council determined will not adversely impact the public health, safety and welfare. For these reasons, adoption of this Ordinance will not adversely affect the public health, safety, and welfare.
SECTION 4. Code Amendment. The definition for “supportive housing” provided in Section 17.88.030 (Definitions) of the San Clemente Municipal Code is hereby amended to read as follows (additions shown in underline and deletions shown in strikethrough):
“Supportive housing" has the same meaning as in California Government Code Section 65650(a), as that section is amended from time to time.as defined by Government Code Sections 65582(g). Supportive housing may take various forms. See, e.g., "Single housekeeping unit," and "Short-term lodging unit," "Boarding house."
SECTION 5. Code Amendment. The definition for “transitional housing” provided in Section 17.88.030 (Definitions) of the San Clemente Municipal Code is hereby amended to read as follows (additions shown in underline and deletions shown in strikethrough):
“Transitional housing” as defined by has the same meaning as in California Government Code Sections 65582(j)(i). Transitional housing may take various forms. See, e.g., "Single housekeeping unit" and "Boarding house." SECTION 6. Code Amendment. Section 17.28.340 is hereby added to Chapter
17.28 of the San Clemente Municipal Code and shall read in its entirety as follows:
“Section 17.28.340 - Supportive and Transitional Housing A. Supportive housing is a use by right in all zones where multifamily and mixed uses are permitted in accordance with Government Code Title 7, Division 1, Chapter 3, Article 11 (commencing with Section 65650). No minimum parking requirement is imposed on supportive housing under this paragraph that is within one-half mile of a public transit stop.
B. Transitional housing and supportive housing are each considered a residential use of property and are subject to those restrictions that apply to other residential dwellings of the same type in the same zone, in accordance with Government Code Section 65583, subdivision (c)(3).” SECTION 7. Publication. The City Clerk shall certify to the adoption of this Ordinance and cause it, or a summary of it, to be published once within 15 days of adoption in a newspaper of general circulation printed and published within the City of San Clemente, and shall post a certified copy of this Ordinance, including the vote for 145
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and against the same, in the Office of the City Clerk in accordance with California Government Code, section 36933.
SECTION 8. Records. The documents and materials associated with this Ordinance that constitute the record of proceedings on which the City Council's findings and determinations are based are located at City Hall, 910 Calle Negocio, San Clemente, CA 92673.
SECTION 9. Severability. If any provision of this Ordinance or its application to any person or circumstance is held invalid, such invalidity has no effect on the other provisions or applications of the Ordinance that can be given effect without the invalid provision or application, and to this extent, the provisions of this Ordinance are severable.
The City Council declares that it would have adopted this Ordinance irrespective of the invalidity of any portion thereof.
SECTION 10. Effective Date. This Ordinance shall become effective 30 days after its adoption.
APPROVED AND ADOPTED this _____ day of _________ , 2022.
ATTEST:
_______________________________ __________________________ Laura Campagnolo, City Clerk Chris Duncan, Mayor
APPROVED AS TO LEGAL FORM:
__________________________________
Scott C. Smith, City Attorney
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF SAN CLEMENTE )
I, Laura Campagnolo, City Clerk of the City of San Clemente, California, hereby certify that Ordinance No. _______ having been regularly introduced at the meeting of _______________________, was again introduced, the reading in full thereof unanimously waived, and duly passed and adopted at a regular meeting of the City Council held on the _____day of _____________, _______, and said ordinance was adopted by the following vote:
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AYES:
NOES:
ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of ______________________, ________.
__________________________
Laura Campagnolo, City Clerk
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ORDINANCE NO. 1745
AN ORDINANCE OF THE CITY COUNCIL OF SAN
CLEMENTE, CALIFORNIA AMENDING VARIOUS
PROVISIONS OF THE SAN CLEMENTE MUNICIPAL
CODE REGARDING RESIDENTIAL CARE FACILITIES
AND FINDING THE ACTION TO BE EXEMPT FROM
THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
(CEQA)
WHEREAS, the City of San Clemente (“City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, in recent years, the State of California has limited local regulation of certain residential uses, including various types of state-regulated residential care facilities; and
WHEREAS, the ordinance (“Ordinance”) amends Titles 5 and 17 of the San Clemente Municipal Code (“SCMC”) to update the City’s regulations governing residential care facilities to create a streamlined approval process for these uses and comply with state law requirements; and
WHEREAS, on November 2, 2022, the Planning Commission conducted a duly noticed public hearing to consider the staff report, recommendations by staff, and public testimony concerning the Ordinance. Following the public hearing, the Planning Commission voted to forward the Ordinance to the City Council with a recommendation in favor of its adoption; and
WHEREAS, on November 23, 2022, the City gave public notice of a City Council public hearing to be held to consider this Ordinance by advertisement in a newspaper of general circulation; and
WHEREAS, on December 6, 2022, the City Council conducted a duly noticed public hearing to consider the Ordinance, including: (1) the public testimony and agenda reports prepared in connection with the Ordinance; (2) the policy considerations discussed therein; and (3) the consideration and recommendation of the Planning Commission; and
WHEREAS, all legal prerequisites to the adoption of the Ordinance have occurred.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, DOES ORDAIN AS FOLLOWS:
SECTION 1. Incorporation of Recitals. The recitals above are true and correct and are hereby adopted as findings as if fully set forth herein.
SECTION 2. CEQA. The City Council finds that adoption of this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 148
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15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Alternatively, the adoption of this Ordinance is exempt from CEQA because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. (State CEQA Guidelines, § 15061(b)(3).)
SECTION 3. Required Findings. In accordance with subsection (F) of San Clemente Municipal Code section 17.16.040, the City Council hereby makes the following findings:
1. General Plan. This Ordinance’s amendments to Title 17 of the San Clemente Municipal Code are consistent with the City’s adopted General Plan. Specifically, Land Use Element Policy LU-1.01 provides that the City should accommodate the development of a variety of housing types, styles and densities. This Ordinance is consistent with and effectuates Policy LU-1.01 by clarifying that residential care facilities are permitted in in accordance with state law. Furthermore, this Ordinance is consistent with, and in furtherance of, the General Plan as it implements a component of the City’s Sixth Cycle Housing Element—which, in relevant part, provides that the City will review state law requirements governing residential care facilities and process any necessary SCMC amendments to ensure compliance with the same.
2. Health, Safety, and Welfare. Adoption of the Ordinance will not adversely affect the public health, safety, and welfare as it simply updates the SCMC to comply with state law requirements governing residential care facilities.
Adoption of this Ordinance is also consistent with and contemplated by the City’s Sixth Cycle Housing Element, the adoption which the City Council determined will not adversely impact the public health, safety, or welfare.
For these reasons, adoption of this Ordinance will not adversely affect the public health, safety, or welfare.
SECTION 4. Code Amendment. The definition of “boarding house” in Section
17.88.030 (Definitions) of the San Clemente Municipal Code is hereby amended to make this term one word (instead of two) that reads as follows: “boardinghouse.” All remaining provisions of this definition are unchanged by this Ordinance.
SECTION 5. Code Amendment. The definition for “residential care facility” in Section 17.88.030 of the San Clemente Municipal Code is hereby amended to read in its entirety as follows:
“Residential Care Facility” means an intermediate care facility/developmentally disabled-habilitative or an intermediate care facility/developmentally disabled– nursing, as defined by California Health and Safety Code section 1250; a community care facility, as defined by California Health and Safety Code section 149
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1502; a residential care facility for the elderly, as defined by California Health and Safety Code section 1569.2; a residential care facility for persons with chronic lifethreatening illness, as defined by California Health and Safety Code section 1568.01; an alcoholism or drug abuse recovery or treatment facility, as defined by California Health and Safety Code section 11834.02; a pediatric day health and respite care facility, as defined by California Health and Safety Code section 1760.2; a congregate living health facility, as defined by California Health and Safety Code section 1250; or a family care home, foster home, or group home serving persons with mental health disorders or other disabilities or dependent and neglected children under California Welfare and Institutions Code section 5116.”
SECTION 6. Code Amendment. The entry for “boarding housing” in Table
17.32.030 of Section 17.32.030 of the San Clemente Municipal Code is hereby amended to make this term one word (instead of two) that reads as follows:
“boardinghouse.”
SECTION 7. Code Amendment. A new note 22 is hereby added to the two rightmost columns within the row for “boardinghouse” in Table 17.32.030 of Section
17.32.030 of the San Clemente Municipal Code. The new note 22 shall read in its entirety as follows:
“22. But if the boardinghouse is a Residential Care Facility (as defined by Section 17.88.030), allowed administratively under Chapter 5.38 (Residential Care Facility Boardinghouse – Streamlined Administrative Approval).”
SECTION 8. Code Amendment. The entry for “boarding house” in Table
17.40.030 of Section 17.40.030 of the San Clemente Municipal Code is hereby amended to make this term on word (instead of two) that reads as follows:
“boardinghouse.”
SECTION 9. Code Amendment. A new footnote number 31 is hereby added to the rightmost column within the row for “boardinghouse” in Table 17.40.030 of Section 17.40.030 of the San Clemente Municipal Code. The new footnote 31 shall read in its entirety as follows:
“31. But if the boardinghouse is a Residential Care Facility (as defined by Section 17.88.030), allowed administratively under Chapter 5.38 (Residential Care Facility Boardinghouse – Streamlined Administrative Approval).”
SECTION 10. Code Amendment. Title 5 (Business Licenses and Regulations) of the San Clemente Municipal Code is hereby amended to add a new Chapter 5.38 (Residential Care Facility Boardinghouse – Streamlined Administrative Approval), to read in its entirety as follows:
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“Chapter 5.38 - Residential Care Facility Boardinghouse Streamlined Administrative Approval”
Section 5.38.010 – Streamlined Administrative Approval
A. Definitions. For purposes of this Section 5.38.010, the terms “boardinghouse” and “Residential Care Facility” have the same meaning as provided in Section 17.88.030.
B. Applicability. When required by state or federal law, a Residential Care Facility serving six or fewer persons is:
1. Exempt from this chapter; and
2. Considered a residential use of property and a single family for purposes of Title 17 of this Code.
C. License Required. A boardinghouse that is a Residential Care Facility and that is subject to this chapter requires an administrative operating license issued by the City to operate.
D. Streamlined Ministerial Approval. An application for an administrative operating license is subject only to streamlined administrative review and will be approved if it satisfies each of the following:
1. Maximum Occupancy. No more than two residents reside in each bedroom, not including the room or apartment designated for an onsite house manager.
2. Management. The operator provides an onsite house manager that resides full-time (year-round) in a room or apartment on the property.
3. Management Plan. The City has approved a property management plan for the facility that addresses each of the following: onsite management; maximum occupancy; quiet hours and permitted guest visitation hours; loitering, littering, and disturbing the peace; nuisance reduction; trash collection; smoking; resident pick-up and drop-off procedures; and discharge. City approval is required for any change.
4. Emergency and Security Plan. The City has approved an emergency and security plan that addresses each of the following:
security- and management-contact information; authority and responsibility of security staff; a map of the property; an overview of the property’s security features; security-feature testing schedule; overnight-parking policies and vehicle violationabatement procedures; emergency medical response protocols; 151
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emergency law enforcement response protocols; and daytime and nighttime security-monitoring procedures. City approval is required for any change.
E. Application Review.
1. Administration. The City may create any form, document, online portal, telephone hotline, or other method to facilitate streamlined administrative submittal of applications under this chapter.
2. Review; Timing; Issuance.
a. Applications are reviewed by the Community Development Director or the Director’s designee.
b. A written decision will be issued within 30 calendar days of the City’s receipt of a complete application. The decision will be sent to the applicant by first-class mail with return receipt requested.
c. An application will be approved and a license will be issued if the application fully complies with the provisions of this Chapter.
3. Appeals. Notwithstanding any other provision of this Code, the City’s decision is final unless appealed within 10 business days of the date that the applicant receives the decision in the mail. An appeal will be scheduled to be heard by a hearing officer within 30 calendar days from the date that the City receives the notice of appeal. The decision of the hearing office is final and will be mailed by first-class mail to the applicant with return receipt requested.
F. Modifications or Revocation.
1. An administrative operating license may be revoked when the application contained incorrect, false, or misleading information; or the operator violates the management plan or emergency and security plan; or if three or more nuisance citations are issued at the property within a 30-day period.
2. Before revoking an operating license, a good faith effort to meet and confer with the operator will be made to resolve any of issues identified in subsection (F)(1) above.
3. The operator will be notified of any revocation by first-class mail with return receipt requested. The operator may appeal the revocation in accordance with subsection (E)(3) above.
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SECTION 11. Code Amendment. Section 5.04.090 (Permits, etc. required for certain businesses) of the San Clemente Municipal Code is hereby amended to add a new subsection (E), to read in its entirety as follows:
“E. Unless it is exempt under Section 5.38.010(B), a boardinghouse that is a Residential Care Facility (as those terms are defined by Section 17.88.030) must obtain an operating license issued in accordance with Chapter 5.38.” SECTION 12. Code Amendment. The row for “Residential Care Facilities, when licensed to serve six or fewer persons” in Table 17.32.030 of Section 17.32.030 of the San Clemente Municipal Code is hereby deleted in its entirety.
SECTION 13. Publication. The City Clerk will certify to the adoption of this Ordinance and cause it, or a summary of it, to be published once within 15 days of adoption in a newspaper of general circulation printed and published within the City of San Clemente, and shall post a certified copy of this Ordinance, including the vote for and against the same, in the Office of the City Clerk in accordance with California Government Code, section 36933.
SECTION 14. Records. The documents and materials associated with this Ordinance that constitute the record of proceedings on which the City Council's findings and determinations are based are located at City Hall, 910 Calle Negocio, San Clemente, CA 92673.
SECTION 15. Severability. If any provision of this Ordinance or its application to any person or circumstance is held invalid, such invalidity has no effect on the other provisions or applications of the Ordinance that can be given effect without the invalid provision or application, and to this extent, the provisions of this Ordinance are severable.
The City Council declares that it would have adopted this Ordinance irrespective of the invalidity of any portion thereof.
SECTION 16. Effective Date. This Ordinance takes effect 30 days after its adoption.
APPROVED AND ADOPTED this ____ day of _________ , 2022.
ATTEST:
_______________________________ __________________________ Laura Campagnolo, City Clerk Chris Duncan, Mayor
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APPROVED AS TO LEGAL FORM:
__________________________________
Scott C. Smith, City Attorney
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF SAN CLEMENTE )
I, Laura Campagnolo, City Clerk of the City of San Clemente, California, hereby certify that Ordinance No. _______ having been regularly introduced at the meeting of _______________________, was again introduced, the reading in full thereof unanimously waived, and duly passed and adopted at a regular meeting of the City Council held on the _____day of _____________, _______, and said ordinance was adopted by the following vote:
AYES:
NOES:
ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of ______________________, ________.
__________________________
Laura Campagnolo, City Clerk
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AGENDA REPORT
CITY OF SAN CLEMENTE
City Council Meeting
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Meeting Date: 12/20/2022 Agenda Item: F.
Department: City Treasurer
Prepared By: Charlie Smith, City Treasurer
Subject:
Adoption of City Investment Policy 202-1
Fiscal Impact:
None
Summary:
The City’s Investment Policy was adopted on December 21, 2021 and has been reviewed by the Investment Advisory Committee (IAC) in accordance with Section 5.6 of the policy. The policy, with proposed recommended changes, is submitted to City Council for approval.
Background:
Government Code Section 53646 requires that the City annually submit to the City Council a written Investment Policy.
Discussion:
After review of the current Investment Policy, including changes recommended by Chandler Asset Management, the City’s external investment advisory firm, and former City Treasurer Mark Taylor, the committee recommended the following change on a 4-0 vote:
· Adding a 20% maximum for callable U.S. agencies securities in the portfolio to mitigate call risk.
o No current maximum.
· Raising the Local Agency Investment Fund (LAIF) limit from $65 million to $75 million to match the LAIF limit.
· Increase maturity limit of Negotiable Certificates of Deposit (NCDs) to five years if the amount is within the FDIC insured limit.
o Current policy on maturity limit is three years.
Recommended Actions:
Staff Recommendation
Staff Recommends that the City Council adopt Investment Policy Number 202-1, effective December 21, 2022.
Attachment:
CITY OF SAN CLEMENTE Page 1 of 2 Printed on 12/16/2022
powered by Legistar™155
Meeting Date: 12/20/2022 Agenda Item: F.
Proposed Investment Policy
Notification:
None
CITY OF SAN CLEMENTE Page 2 of 2 Printed on 12/16/2022
powered by Legistar™156
Table of Contents
Section Page
1.0 Purpose .................................................................................................................1
2.0 Organizations Affected............................................................................................1
3.0 References ............................................................................................................1
4.0 Policy .....................................................................................................................1
4.1 Scope ........................................................................................................1
4.2 Objective ....................................................................................................2
4.3 Prudence....................................................................................................3
4.4 Delegation of Authority ...............................................................................3
4.5 Ethics and Conflict of Interest ....................................................................4
4.6 Authorized Financial Dealers and Institutions ............................................4
4.7 Authorized and Suitable Investments .........................................................5
4.8 Safekeeping & Collateralization..................................................................8
4.9 Safekeeping & Custody..............................................................................9
4.10 Diversification and Maturity Limitations ...................................................9
4.11 Marking to Market .................................................................................11
4.12 Pools.....................................................................................................11
5.0 Procedure............................................................................................................11
5.1 Internal Control .........................................................................................11
5.2 Performance Standards ............................................................................11
5.3 Competitive Bids .......................................................................................12
5.4 Reporting ..................................................................................................12
5.5 Investment Advisory Committee................................................................12
5.6 Investment Policy Adoption .......................................................................13
5.7 Investment Policy Distribution ...................................................................13
6.0 Definitions ...........................................................................................................13 Management Directive to External Money Manager………………………………… 18 California Government Code....................................................................................20 City of San Clemente-Broker/Dealer Questionnaire...............................................34
INVESTMENT POLICY
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POLICY AND PROCEDURE
Subject: Investment Policy Index: Treasurer
Number: 202-1
Effective Date: January 19, 2021
December 21, 2022
Prepared By: Finance and
Administrative Services/City Treasurer
Supersedes:
January 19, 2021 December 22, 2021
Approved By:
1.0 PURPOSE: The purpose of the City’s Investment Policy is to provide comprehensive guidelines for the responsible management of the City’s funds that are available for investment. These may include, but are not limited to, temporarily idle cash, reserve funds, trust, agency, and capital funds.
2.0 ORGANIZATIONS AFFECTED:
All departments/divisions
3.0 REFERENCES:
3.1 Civil Code Section 2261, et seq.
3.2 Government Code Section 53600, et seq.
3.3 Code of Ethics Policy, Administrative Policy #102-1
4.0 POLICY: It is the policy of the City of San Clemente (“the City”) to invest public funds in a manner which will provide the maximum security of principal consistent with a market rate of return while meeting the cash flow needs of the City and conforming to all applicable State and City statutes governing the investment of public funds, as referenced in section 3.0. Every effort will be made to match investment maturities to cash flow needs.
4.1 SCOPE: This investment policy applies to all financial assets of the City.
These funds are accounted for in the City of San Clemente's Comprehensive Annual Financial Report and include:
4.1.1 FUNDS:
4.1.1.1 General Funds
4.1.1.2 Special Revenue Funds
4.1.1.3 Capital Project Funds
4.1.1.4 Enterprise Funds
4.1.1.5 Internal Services Funds
4.1.1.6 Trust and Agency Funds
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4.1.1.7 Debt Service Funds
4.1.1.8 Redevelopment Agency Funds
4.1.1.9 Any new fund created by the City Council
4.1.2 BOND PROCEEDS: The investment of bond proceeds will be made in accordance with applicable bond indentures.
4.2 OBJECTIVE: The primary objectives, in priority order, of the City of Clemente’s investment activities shall be:
4.2.1 Safety: Safety of principal is the foremost objective of the City.
Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk.
4.2.1.1 Credit Risk: Credit Risk is the risk of loss due to the failure of the security issuer or backer. Credit risk may be mitigated by:
4.2.1.1.1 Limiting investments authorized by this Policy by maturity and credit ratings.
4.2.1.1.2 Pre-qualifying the financial institutions,
broker/dealers, intermediaries, and advisors
with which the City will do business; and
4.2.1.1.3 Diversifying the investment portfolio so that potential losses on portfolio securities will be
minimized.
4.2.2.1 Interest Rate Risk: Interest rate risk is the risk that the market value of securities in the portfolio will fall due to changes in general interest rates. Interest rate risk
may be mitigated by:
4.2.2.1.1 Structuring the investment portfolio so that
securities mature to meet cash requirements for
ongoing operations, thereby avoiding the need
to sell securities on the open market prior to
maturity, and
4.2.2.1.2 By investing operating funds primarily in shorterterm securities.
4.2.2 Liquidity: The City's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated.
4.2.3 Return on investment: The City's investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the 159
City's investment risk constraints and the cash flow characteristics of the portfolio.
4.3 Prudence: Pursuant to California Government Code, Section 53600.3, all persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to the Prudent Investor Standard:
“…all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the Agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the Agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.”
4.4 Delegation of Authority: The City Council, by adoption of this Investment Policy, delegates investment authority to the City Treasurer. In accordance with Government Code Section 53607, investment authority may be delegated for a one-year period by the City Council. In accordance with Government Code Section 53607, investment authority may be revoked by the City Council before that one year period is over.
4.4.1 External Investment Advisor: The City Treasurer may review and evaluate the services of registered external investment advisors to manage all or a part of the City’s investment portfolio. Investment advisors shall make all investment decisions in accordance with State law and the City’s investment policy. Selection of broker/dealers used by an external investment advisor retained by the City will be at the discretion of the investment advisor, unless the City Council, under advisement of the Investment Advisory Committee determines one or more of the broker/dealers being used to be unsuitable for any reason.
4.4.1.1 Selection of External Investment Advisor: The Investment Advisory Committee shall, after review of external investment advisors qualifications, recommend to the City Council the selection of one or more firms to manage City investments, or recommend the replacement of an existing firm.
4.4.2 The City Treasurer, with approval by the Finance & Administrative Services Director, shall develop and maintain written administrative procedures for the operation of the investment program which are consistent with this Investment Policy. Procedures will include 160
reference to safekeeping, Public Securities Association (PSA) Master Repurchase Agreements, wire transfer agreements, collateral and deposit agreements, banking service contracts, broker/dealer questionnaire and certification, and other investment related activities.
4.4.3 No person may engage in an investment transaction except as provided under terms of this Policy and the procedures established herein.
4.4.4 The City Treasurer with approval by the Finance & Administrative Services Director shall establish a system of controls to regulate the investment activities of subordinate officials.
4.4.5 The Finance & Administrative Services Director or his/her designee, is designated as the acting investment officer of the City when the primary investment officer is unavailable.
4.5 Ethics and Conflicts of Interest: Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions.
4.5.1 Officers and employees involved in the investment process shall abide by the City’s adopted Code of Ethics policy, which by reference is incorporated into this Policy.
4.6 Authorized Financial Dealers and Institutions: The City Treasurer will maintain a list of qualified financial institutions, as approved by the Investment Advisory Committee, including banks, savings and loans, and broker/ dealers, authorized to provide investment services.
A list will be maintained of approved securities broker/dealers selected by credit worthiness, who maintain an office in the State of California. These may include "primary" dealers or regional dealers that meet the requirements stated in the City’s Broker Dealer Questionnaire and Certification.
All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must submit an application, including the completion of a Broker/Dealer Questionnaire and Certification, on an annual basis.
4.6.1 Annual Review: An annual review of the financial condition and registrations of qualified investment providers will be conducted by the Finance & Administrative Services Director and the City’s Investment Advisory Committee.
4.6.2 Audited Financial Statement: A current audited financial statement
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is required to be on file in the City Clerk’s Office for each financial institution and broker/dealer with whom the City does business, including external money managers, banks, custodians of securities and broker/dealers.
4.6.3 Counterparty Risk: Financial institutions with whom the city does business should be well capitalized and credit worthy to minimize Counterparty Risk.
4.7 Authorized and Suitable Investments:
4.7.1 Authorized Investments: In accordance with State law, investments may be made in the following media (California Government Code Section 16429.1, 53600-53609 and 53630- - Exhibit attached): The City seeks to further restrict eligible investments to the guidelines listed below. In the event an apparent discrepancy is found between this Policy and the Government Code, the most restrictive parameters will take precedence. Percentage holding limits and credit rating minimums listed in this section apply at the time the security is purchased.
Any investment currently held at the time the Policy is adopted which does not meet the new Policy guidelines can be held until maturity, and shall be exempt from the new Policy. At the time of the investment’s maturity or liquidation such funds shall be reinvested only as provided in the most current Policy.
4.7.1.1 U.S. Treasury Securities or
4.7.1.2 Federal Agency Securities
4.7.1.1.1 Federal Home Loan Bank (FHLB)
4.7.1.1.2 Federal National Mortgage Association
(FNMA)
4.7.1.1.3 Federal Home Loan Mortgage
Corporation (FHLMC)
4.7.1.1.4 Federal Farm Credit Bank (FFCB)
4.7.1.1.5 Tennessee Valley Authority (TVA)
4.7.1.3 Collateralized or insured Passbook Savings
Accounts & Demand Deposits.
4.7.1.4 Collateralized or insured Certificates of Deposits (or Time Deposits) placed with commercial
banks and/or savings and loan companies.
4.7.1.5 Bankers Acceptances with banks whose short
term obligations are rated A-1/P-1 or higher, or
the equivalent, by at least one nationally
recognized statistical rating organization
(NRSRO). Banks may not be on “negative credit
watch” by any NRSRO. Maturities may not
exceed 180 days.
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4.7.1.6 Commercial Paper purchases may not exceed
270 days maturity nor represent more than 10%
of the outstanding paper of an issuing
corporation. Investments in any single issuer
shall not exceed 5% of the total portfolio market
issued by institutions whose short term
obligations are rated “A-1/P-1” or higher, or the
equivalent, by at least one NRSRO; and whose
long-term obligations, if any, are rated “A2/A” or
higher by at least one NRSRO. They must be
issued by a corporation organized and operating
within the United States with more than $500
million in total assets; or issued by an issuer
organized within the United States as a special
purpose corporation, trust, or limited liability
company with programwide credit enhancement
including, but not limited to,
overcollateralization, letters of credit, or a surety
bond.
4.7.1.7 Corporate Debentures (including Medium Term
Notes issued by corporations organized and
operating in the U.S.). Investments in any single
issuer, when combined with any investments in
negotiable certificates of deposit, shall not
exceed 3% of the total portfolio market value.
Corporate issues purchased by an investment
advisor hired by the City for their credit
evaluation process must be rated at least in the
“A” category or equivalent by at least one
NRSRO at the time of purchase. Corporate
issues purchased by the Treasurer must be
rated as follows:
4.7.1.7.1 For maturities of three years or less in
the “A2/A” category or higher at time of
purchase.
4.7.1.7.2 For maturities of greater than three years
to five years in the “Aa3/AA-” category or
higher at time of purchase.
4.7.1.8 Repurchase agreements whose underlying
collateral consists of the foregoing, provided a
signed PSA Master Repurchase Agreement is
on file with the counterpart bank or
broker/dealer. Direct investments in Reverse
Repurchase agreements are prohibited.
4.7.1.9 Local Agency Investment Fund (State of
California Pool).
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4.7.1.10 Money market mutual funds whose portfolio
consists of investments listed in Section 4.7.1.
Money market mutual funds must be AAA rated
by at least 2 of the 3 largest rating agencies.
4.7.1.11 Asset-Backed Securities where the securities
are rated “AA” or higher by a NRSRO. The
maximum legal final maturity may not exceed
five (5) years.
4.7.1.12 Negotiable Certificates of Deposit (NCDs issued by a nationally or state-chartered bank, a
savings association or a federal association (as
defined by Section 5102 of the Financial Code),
a state or federal credit union, or by a federally
licensed or state licensed branch of a foreign
bank). Purchases of eligible NCDs in any single
issuer, when combined with any investments in
corporate debentures, shall not exceed 3% of
the total portfolio market value. NCD issues
purchased in an amount above the FDIC
insured limit must be rated in the “A2/A”
category or higher by at least one NRSRO; or
have short term debt obligations rated “A-1/P-1”
or higher, or the equivalent, by at least one
NRSRO. The maturities of NCDs may not
exceed 3 5 years, if the amount is within the
FDIC insured limit.. When purchased in the
City’s internally managed portfolio the issuer
must have an IDC ranking of “Excellent” or
higher at time of purchase.
4.7.1.13 Orange County Investment Pool (OCIP).
4.7.1.14 Supranational Securities, provided that the
securities are US-dollar denominated senior
unsecured obligations issued or unconditionally
guaranteed by the International Bank for
Reconstruction and Development, International
Finance Corporation, or Inter-American
Development Bank, and are rated in the “AA”
category or higher by a NRSRO. No more than
5% of the portfolio may be invested in a single
issuer.
4.7.2 Bank Savings Accounts and Certificates of Deposit: No funds will be invested in an institution which has at the time the deposit or investment is made, a regulatory capital rating of less than “adequately capitalized.”
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4.7.3 Prohibited Investment Vehicles and Practices:
4.7.3.1 State law notwithstanding, any investments not
specifically described herein are prohibited, including, but not limited to futures and options.
4.7.3.2 In accordance with Government Code Section
53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited.
4.7.3.3 Investment in any security not issued or backed by the US government that could result in a zero interest
accrual if held to maturity is prohibited.
4.7.3.4 Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.
4.7.3.5 Purchasing or selling securities on margin is prohibited.
4.7.3.6 The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is
prohibited.
4.7.3.7 The purchase of foreign currency denominated
securities is prohibited.
4.7.4 Pool Investments: With the exception of Local Agency Investment Fund (LAIF), a thorough investigation of the pool fund is required prior to investing, and on an annual basis. This investigation will address and document the following items:
4.7.4.1 A description of eligible investment securities, and a written statement of investment policy and objectives.
4.7.4.2 A description of interest calculations and how it is distributed, how gains and losses are treated, and the
fees charged
4.7.5 Credit Rating Downgrade: In the event that an issue is later downgraded to a level below the quality required for purchase by this investment policy, the Treasurer will assess the risk exposure to the City and will make a decision regarding course of action and will advise the Investment Advisory Committee accordingly. If a security purchased by an external investment advisor is downgraded below the requirements of this policy, making the security ineligible for additional purchases, any actions taken by the external investment advisor will be communicated to the Treasurer in a timely manner. If a decision is made to retain the security, the credit situation will be monitored and reported to the Investment Advisory Committee.
4.8 Safekeeping & Collateralization:
4.8.1 Repurchase Agreements: Collateral is required for all repurchase agreements. In order to anticipate market changes and provide a
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level of security for all funds, the collateralization level will be a minimum of 102% of market value of principal and accrued interest.
Collateral will always be held by an independent third party with whom the City has a current custodial agreement. The independent third party custodian must be a major financial institution, with at least $5 billion in assets plus a long term rating of A or better. The third party custodian shall be required to issue a safekeeping receipt to the City listing the specific instrument, rate, maturity and other pertinent information. The right of collateral substitution is granted for repurchase agreements.
Collateral securities shall be equal in quality and may only consist of Those securities listed as authorized investments in sections 4.7.1.1 Through 4.7.1.5.
4.8.2 Certificates of Deposit: Collateral of at least 110% or FDIC insurance is required for Certificates of Deposit.
4.8.3 Passbook Savings and Demand Deposits: Collateral or FDIC Insurance is required for Certificates of Deposit.
4.9 Safekeeping & Custody: All security transactions, including collateral for repurchase agreements, certificates of deposit, demand deposits, and time deposits entered into by the City shall be conducted on a delivery-versuspayment (DVP) basis. Securities will be held by a third party qualified custodian designated by the City and will be evidenced by safekeeping receipts. Certificates of Deposit will be held in the City’s vault.
4.10 Diversification and Maturity Limitations:
4.10.1 Diversification: It is the policy of the City to diversify its investment portfolio. Invested funds shall be diversified to minimize the risk of loss resulting from over concentration of assets in a specific maturity, specific issuer, or specific class of securities. Diversification strategies shall be established and reviewed quarterly by the City Treasurer and Investment Advisory Committee.
4.10.1.1 Portfolio Diversification: The portfolio will maintain diversification by imposing the following limits, at time of purchase, on eligible investments:
U.S. Treasury 100%
U.S. Agency 75%
Collateralized or insured Passbook Savings &
Demand Deposits 30%
Collateralized or insured Certificates of Deposits30%
Negotiable Certificates of Deposits (NCDs) 20%
Bankers Acceptances 30%
Commercial Paper 15%
Corporate Debentures 20%
(including Medium Term Notes and Bank Notes)
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Repurchase Agreements 30%
Local Agency Investment Fund (LAIF) 50%
(but not to exceed $65 75 million)
Money Market Mutual Funds 20%
Asset-Backed Securities 10%
Supranational Securities 10%
Orange County Investment Pool 10%
No more than 30% of the total portfolio may be invested in any one Federal Agency issuer.
The combined exposure in callable U.S. Agency securities shall not exceed 20% of the total market value of the
portfolio.
The combined investment exposure of any issuer in
Corporate Debentures and Negotiable Certificates of
Deposits (NCDs) shall not exceed 3% of the total portfolio market value. The combined investment exposure in
Corporate Debentures and NCDs in excess of the FDIC
limits, shall not exceed 20% of the total portfolio market value.
No more than 30% of the City’s total investment portfolio will be invested in a single security type or with a single financial institution or pool except:
4.10.1.1.1 US Treasury and Agency securities
4.10.1.1.2 The City may invest up to 60% in LAIF
and OCIP combined, but not to exceed
$65 75 million in LAIF and $15 million
in OCIP.
No more than 5% of the City’s portfolio may be invested in any issuer of securities other than where the issuer is the US Government or its Agencies, or where the security is a Money Market Mutual Fund or Local Agency Investment
Fund (LAIF) or unless otherwise specified in this
investment policy.
4.10.1.2 Maturity Diversification: Every effort will be made to match investment maturities to cash flow needs.
Matching maturities with cash flow dates will reduce
the need to sell securities prior to maturity, thus
reducing market risk.
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4.10.1.2.1 Unless matched to a specific
requirement, no more than 50% of the
investment portfolio may be invested with
maturities greater than 2 years.
4.10.1.2.2 Unless matched to a specific
requirement and approved by the City
Council, no investment may be made
with a maturity greater than 5 years.
4.11 Marking to Market: The City shall mark investments to market on a monthly basis.
4.12 Investment Pools: Prior to entering a pool, a pool questionnaire must be completed and kept on file in the City Treasurer’s office.
5.0 PROCEDURE:
5.1 Internal Control: In conjunction with the City’s independent annual financial audit, a review of actual and documented internal controls of the City’s investment program will be conducted. The review will assure that internal controls are adequate and assure compliance with policies and procedures. The City’s Investment Advisory Committee will be provided with access to a copy of the annual audit within 30 days of publication. The City will email a link to the Investment Advisory Committee so that they can access the financial audit.
5.2 Performance Standards: The investment portfolio will be designed to obtain an average market rate of return, taking into account the City's investment risk constraints (safety), cash flow needs, and maturities of the investments.
5.2.1 Market Rate of Return (Benchmark): The City of San Clemente’s investment strategy is active. The investment portfolio’s return shall be measured using total return.
The investment portfolio shall be designed to attain a total return commensurate with the risk constraints outlined by the City’s Investment Policy. The benchmark for the City’s portfolio are:
5.2.1.1 BofA Merrill Lynch 1-3 Year US Treasury & Agency Index (primary)
5.2.1.2 BofA Merrill Lynch AAA-A Corporate & Government Index (reference)
It is understood that the portfolio’s total return can and will differ from
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the index through different market cycles as the investment portfolio’s priority is to meet the liquidity needs of the City.
Nevertheless, it is the intent to use this benchmark as a tool with which to measure the relative risk and return of the portfolio.
5.3 Competitive Bids: A minimum of three bids or quotations will be obtained prior to the completion of secondary investment transactions with authorized financial institutions. This does not apply to authorized investment pools or money market mutual funds.
5.4 Reporting: The Finance & Administrative Services Director and City Treasurer are charged with the responsibility of distributing a Quarterly Investment Report on investment activity and returns in the City's Quarterly Financial Report. The report will be provided to the City’s Investment Advisory Committee and City Council within 30 days following the end of the quarter covered by the report. The California Code requires the following components:
5.4.1 Investment type, issuer, date of maturity, par value and dollar amount invested in all securities, and investments and monies held by the City;
5.4.2 A description of the funds, investments and programs; and
5.4.3 A market value as of the date of the report (or the most recent valuation as to assets not valued monthly) and the source of this valuation; and
5.4.4 Monthly transactions for the period; and
5.4.5 A statement of compliance with the investment policy or an explanation for non-compliance; and
5.4.6 A statement of the City’s ability to meet expenditure requirements for six months, and an explanation of why money will not be available if that is the case.
5.5 Investment Advisory Committee: The City Treasurer shall automatically be a member and serve as Chair. The City Council shall appoint two citizen representatives and a Council representative. The City Treasurer shall appoint one industry specialist, who does not need to be a citizen of San Clemente.
5.5.1 Members (Voting):
5.5.1.1 City Treasurer (Chair)
5.5.1.2 Council member representative
5.5.1.3 Two citizen representatives
5.5.1.4 One Industry Specialist
Three (3) voting members will constitute a quorum.
5.5.2 Staff (Non-Voting):
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5.5.2.1 Finance & Administrative Services Director or designee (Staff)
5.5.3 Role:
5.5.3.1 To review and recommend City investment policies
5.5.3.2 To review the investment portfolio and practices for performance and conformance to adopted policies
and procedures.
5.5.4 Meetings:
6.5.4.1 The Investment Advisory Committee shall meet no less than quarterly.
5.5.5 Reports:
5.5.5.1 A quarterly report shall be submitted to the Committee by the City Treasurer, and be reviewed and approved
by the Investment Advisory Committee.
5.6 Investment Policy Adoption: The City's investment policy shall be adopted by the City Council on an annual basis. The policy shall be reviewed on an annual basis by the City Treasurer, Assistant City Manager/Finance & Administrative Services Director and City’s Investment Advisory Committee and any modifications made thereto must be recommended by the Committee and approved by the City Council.
5.7 Investment Policy Distribution: A copy of the City’s adopted investment policy will be distributed to the Investment Advisory Committee, City Treasurer, Deputy Administration Services Director, brokers, financial auditors, primary bank, and City Attorney. A copy will be posted on the City’s web site and be on file in the City Clerk’s office.
6.0 DEFINITIONS
6.1 ADEQUATELY CAPITALIZED: Capital group assignments are made in accordance with section 327.3(e)(1)(1) of the FDIC’s amended assessment regulation. Not Well Capitalized and Total Risk-Based Capital Ratio equal to or greater than 8 percent, and Tier I Risk-Based Capital Ratio equal to or greater than 4 percent, and Tier I Leverage Capital Ratio equal to or greater than 4 percent.
(See Well Capitalized and Undercapitalized).
6.2 AGENCIES: Federal agency securities.
6.3 ASSET BACKED SECURITIES: Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.
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6.4 BANKERS' ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.
6.5 BROKER: A broker brings buyers and sellers together for a commission paid by the initiator of the transaction or by both sides; he does not position or take ownership of the security. In the money market, brokers are active in markets in which banks buy and sell money and in inter-dealer markets.
6.6 CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CD's are typically negotiable.
6.7 COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.
6.8 COLLATERALIZED MORTGAGE OBLIGATIONS (CMO): Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities.
6.9 COMMERCIAL PAPER: An unsecured promissory note with a fixed maturity of no more than 270 days. Commercial paper is normally sold at a discount from face value.
6.10 COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the City of San Clemente. It includes five combined statements and basic financial statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with financerelated legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.
6.11 COUNTERPARTY: One of the counterparts (participants) in a financial transaction.
6.12 COUNTERPARTY RISK: The risk that a counterparty might fail to fulfill its contractual obligations.
6.13 COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a payment date.
6.14 DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.
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6.15 DELIVERY VERSUS PAYMENT (DVP): There are two methods of delivery of securities: delivery versus payment and delivery versus receipt (also called free). Delivery versus payment is delivery of securities with an exchange of money for the securities with an exchange of a signed receipt for the securities.
6.16 DEPOSITORY: A state or national bank, savings association or federal association, a state or federal credit union, or a federally insured industrial loan company, in the state in which the moneys of a local agency are deposited.
6.17 DIVERSIFICATION: Dividing investment funds among a variety of securities, issuers, and maturities.
6.18 DURATION: A measure of the timing of the cash flows to be received from a security that provides the foundation for a measure of the interest rate sensitivity of a bond. Duration is an elasticity measure and represents the percentage change in price divided by the percentage change in interest rates. A high duration measure indicates that for a given level of movement in interest rates, prices of securities will vary considerably.
6.19 FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L's, small business firms, students, farmers, farm cooperatives, and exporters.
6.20 FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) A federal agency that insures bank deposits, currently up to $250,000 per deposit.
6.21 IDC Ranking: IDC Financial Publishing, Inc. compiles financial data on all banks, thrifts and credit unions reporting to the federal government, and publishes a ranking based on 35 key financial ratios.
6.22 LEVERAGE: The amplification in the return earned on funds when an investment is financed partly with borrowed money.
6.23 LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes.
6.24 LOCAL AGENCY INVESTMENT FUND (LAIF): The aggregate of all funds from local governments that are placed in the custody of the State Treasurer for investment and reinvestment.
6.25 MARKET RATE OF RETURN: The average yield of the 90 day U.S.
Treasury Bill or such other index that most closely matches the average maturity of the portfolio.
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6.26 MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.
6.27 MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase--reverse repurchase agreements that establish each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyerlender to liquidate the underlying securities in the event of default by the seller-borrower.
6.28 MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.
6.29 MONEY MARKET FUND: Mutual fund that invests solely in money market instruments.
6.30 MORTGAGE PASS-THROUGH SECURITIES: A securitized participation in the interest and principal cash flows from a specified pool of mortgages.
Principal and interest payments made on the mortgages are passed through to the holder of the security.
6.31 MUNICIPAL SECURITIES: Securities issued by state and local agencies to finance capital and operating expenses.
6.32 NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO): is a credit rating agency that issues credit ratings that the U.S.
Securities and Exchange Commission permits other financial firms to use for certain regulatory purposes.
6.33 NEGOTIABLE CERTIFICATE OF DEPOSIT (NCD): A short-term debt instrument that pays interest and is issued by a bank, savings or federal association, state or federal credit union, or state-licensed branch of a foreign bank. Negotiable CDs are traded in a secondary market.
6.34 ORANGE COUNTY INVESTMENT POOL: The OCIP is a pooled fund managed by the Orange County Treasurer pursuant to California Government Code sections 53601 and 53635. It is considered a very safe, liquid investment pool, investing in short term, high quality securities.
6.35 PAR VALUE: the value printed on a security such as a share certificate or bond at the time of issue.
6.36 PORTFOLIO: Collection of securities held by an investor.
6.37 PRIMARY BANK: The bank utilized by the City for it's main banking activities including daily cash and ACH transactions, direct deposit, check processing, trust services, etc.
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6.38 PRIMARY DEALER: A group of government securities dealers that submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) registered securities broker-dealers, banks, and a few unregulated firms.
6.39 QUALIFIED BIDDER: Those broker/dealers that are deemed by the Assistant City Manager or City Treasurer, as applicable, to be qualified to bid on City investments. Specific qualifications of the financial institution or dealer are contained in the City’s Broker/Dealer Questionnaire and Certification.
6.40 RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.
6.41 REDEMPTION VALUE: The price at which the issuing company may choose to repurchase a security before its maturity date.
6.42 REPURCHASE AGREEMENT: A purchase of securities by the City pursuant to an agreement by which the seller will repurchase the securities on or before a specified date, and for a specified amount and will deliver the underlying securities to the City by book entry, physical delivery, or a third-party custodial agreement.
6.43 SAFEKEEPING: Storage and protection of a customer’s financial assets, valuables, or documents, provided as a service by an institution serving as agent and, where control is delegated by the customer, also as custodian.
6.44 SURPLUS FUNDS: Those funds that are available for investment and are not anticipated to be needed for City operations for the next six (6) months.
6.45 SUPRANATIONALS: A multi-national organization whereby member states transcend national boundaries or interests to share in the decision-making to promote economic development in member countries.
6.46 TOTAL RETURN: The sum of all investment income plus all changes in the capital value of the portfolio.
6.47 TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.
6.48 TREASURY BOND: Long-term U. S. Treasury securities having initial maturities of more than ten years.
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6.49 TREASURY NOTES: Intermediate term coupon bearing U. S. Treasury securities having initial maturities of from one to ten years.
6.50 UNDERCAPITALIZED: Capital group assignments are made in accordance with section 327.3(e)(1)(1) of the FDIC’s amended assessment regulation.
Neither Well Capitalized nor Adequately Capitalized.
6.51 WELL CAPITALIZED: Capital group assignments are made in accordance with section 327.3(e)(1)(1) of the FDIC’s amended assessment regulation.
Total Risk-Based Capital Ratio equal to or greater than 10 percent, and Tier I Risk-Based Capital Ratio equal to or greater than 6 percent, and Tier I Leverage Capital Ratio equal to or greater than 5 percent.
RE: Client Directive regarding management of the City’s investment portfolio The City of San Clemente entered into a discretionary investment advisory agreement on October 1, 2013 with Chandler Asset Management, an SEC-registered investment advisor, to manage a portion of the City’s portfolio in accordance with its investment objectives and policies.
After consultation with Chandler’s investment team, the City selected the Limited Maturity investment strategy for the portion of the City’s portfolio managed by Chandler. This strategy invests in a well-diversified portfolio of US dollar denominated fixed income securities managed in compliance with the City’s investment policy.
Starting on October 1, 2019, Chandler will make best efforts to maintain the City’s market risk as measured by modified duration within +/- 10% of the duration of the ICE Bank of America Merrill Lynch 0-5 Year US Treasury Index. In addition, starting on October 1, 2019, the Chandler managed portion of the City’s portfolio will use ICE Bank of America Merrill Lynch 0-5 Year US Treasury Index for performance comparisons while utilizing the ICE Bank of America Merrill Lynch 1-3 Year US Treasury and Agency Index for all previous performance comparisons.
Along with selecting a strategy we also discussed additional clarifying items in the City’s investment policy:
Section 4.10.1.2.1 – Chandler will maintain an allocation of at least 25% to securities that mature less than 2 years. Inclusive of the Chandler portfolio and the City’s internally managed portfolio’s allocation to liquidity vehicles and shorter maturity securities, the entire portfolio will maintain 50% of its securities maturing in less than 2 years.
Although the investment policy states the benchmark for the City’s entire portfolio is the ICE Bank of America Merrill Lynch 1-3 Year US Treasury and Agency Index, starting October 1, 2019 the Chandler managed portfolio will use the ICE Bank of America Merrill Lynch 0-5 Year US Treasury Index to compare both portfolio performance and characteristics.
Starting October 1, 2019, the City’s internally managed portfolio will use the ICE Bank of America Merrill Lynch US 1-Year Treasury Bill to compare both portfolio
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performance and characteristics.
The average duration and maturity of the portfolio is not likely to exceed the ICE Bank of America Merrill Lynch 1-3 Year US Treasury and Agency Index because the City’s internally managed balance includes a high percentage of liquidity vehicles to facilitate the City’s near-term cash flow needs.
The City’s staff will maintain appropriate levels of liquidity utilizing an internally managed short-term portfolio. In addition, Chandler will not purchase securities issued by the Foothill/Eastern Transportation Corridor Agency and San Joaquin Hills Transportation Corridor Agency until further notice.
This directive is in effect as of November 4, 2019 and will remain in effect until it is replaced by a revised directive.
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Revised on September 22th, 2016
CALIFORNIA GOVERNMENT CODE
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California Government Code
Sections 16429.1, 53600-53610, 53630
(a) There is in trust in the custody of the Treasurer the Local Agency Investment Fund, which fund is hereby created. The Controller shall maintain a separate account for each governmental unit having deposits in this fund.
(b) Notwithstanding any other law, a local governmental official, with the consent of the governing body of that agency, having money in its treasury not required for immediate needs, may remit the money to the Treasurer for deposit in the Local Agency Investment Fund for the purpose of investment.
(c) Notwithstanding any other law, an officer of any nonprofit corporation whose membership is confined to public agencies or public officials, or an officer of a qualified quasi-governmental agency, with the consent of the governing body of that agency, having money in its treasury not required for immediate needs, may remit the money to the Treasurer for deposit in the Local Agency Investment Fund for the purpose of investment.
(d) Notwithstanding any other law or provision of this section, a local agency, with the approval of its governing body, may deposit in the Local Agency Investment Fund proceeds of the issuance of bonds, notes, certificates of participation, or other evidences of indebtedness of the agency pending expenditure of the proceeds for the authorized purpose of their issuance. In connection with these deposits of proceeds, the Local Agency Investment Fund is authorized to receive and disburse moneys, and to provide information, directly with or to an authorized officer of a trustee or fiscal agent engaged by the local agency, the Local Agency Investment Fund is authorized to hold investments in the name and for the account of that trustee or fiscal agent, and the Controller shall maintain a separate account for each deposit of proceeds. (e) The local governmental unit, the nonprofit corporation, or the quasi-governmental agency has the exclusive determination of the length of time its money will be on deposit with the Treasurer.
(f) The trustee or fiscal agent of the local governmental unit has the exclusive determination of the length of time proceeds from the issuance of bonds will be on deposit with the Treasurer.
(g) The Local Investment Advisory Board shall determine those quasi-governmental agencies which qualify to participate in the Local Agency Investment Fund. (h) The Treasurer may refuse to accept deposits into the fund if, in the judgment of the Treasurer, the deposit would adversely affect the state's portfolio. (i) The Treasurer may invest the money of the fund in securities prescribed in Section 16430. The Treasurer may elect to have the money of the fund invested through the
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Surplus Money Investment Fund as provided in Article 4 (commencing with Section 16470) of Chapter 3.
(j) Money in the fund shall be invested to achieve the objective of the fund which is to realize the maximum return consistent with safe and prudent treasury management. (k) All instruments of title of all investments of the fund shall remain in the Treasurer's vault or be held in safekeeping under control of the Treasurer in any federal reserve bank, or any branch thereof, or the Federal Home Loan Bank of San Francisco, with any trust company, or the trust department of any state or national bank. (l) Immediately at the conclusion of each calendar quarter, all interest earned and other increment derived from investments shall be distributed by the Controller to the contributing governmental units or trustees or fiscal agents, nonprofit corporations, and quasi-governmental agencies in amounts directly proportionate to the respective amounts deposited in the Local Agency Investment Fund and the length of time the amounts remained therein. An amount equal to the reasonable costs incurred in carrying out the provisions of this section, not to exceed a maximum of 5 percent of the earnings of this fund and not to exceed the amount appropriated in the annual Budget Act for this function, shall be deducted from the earnings prior to distribution. However, if the 13-week Daily Treasury Bill Rate, as published by the United States Department of the Treasury on the last day of the state's fiscal year is below 1 percent, then the above-noted reasonable costs shall not exceed a maximum of 8 percent of the earnings of this fund for the subsequent fiscal year, shall not exceed the amount appropriated in the annual Budget Act for this function, and shall be deducted from the earnings prior to distribution. The amount of the deduction shall be credited as reimbursements to the state agencies, including the Treasurer, the Controller, and the Department of Finance, having incurred costs in carrying out the provisions of this section. (m) The Treasurer shall prepare for distribution a monthly report of investments made during the preceding month.
(n) As used in this section, "local agency," "local governmental unit," and "local governmental official" includes a campus or other unit and an official, respectively, of the California State University who deposits moneys in funds described in Sections 89721, 89722, and 89725 of the Education Code.
53600. As used in this article, "local agency" means county, city, city and county, including a chartered city or county, school district, community college district, public district, county board of education, county superintendent of schools, or any public or municipal corporation.
53600.3. Except as provided in subdivision (a) of Section 27000.3, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then
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prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.
Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.
When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, the primary objective of a trustee shall be to safeguard the principal of the funds under its control. The secondary objective shall be to meet the liquidity needs of the depositor. The third objective shall be to achieve a return on the funds under its control.
The Legislature hereby finds that the solvency and creditworthiness of each individual local agency can impact the solvency and creditworthiness of the state and other local agencies within the state. Therefore, to protect the solvency and creditworthiness of the state and all of its political subdivisions, the Legislature hereby declares that the deposit and investment of public funds by local officials and local agencies is an issue of statewide concern.
53601. This section shall apply to a local agency that is a city, a district, or other local agency that does not pool money in deposits or investments with other local agencies, other than local agencies that have the same governing body. However, Section 53635 shall apply to all local agencies that pool money in deposits or investments with other local agencies that have separate governing bodies. The legislative body of a local agency having moneys in a sinking fund or moneys in its treasury not required for the immediate needs of the local agency may invest any portion of the moneys that it deems wise or expedient in those investments set forth below. A local agency purchasing or obtaining any securities prescribed in this section, in a negotiable, bearer, registered, or nonregistered format, shall require delivery of the securities to the local agency, including those purchased for the agency by financial advisers, consultants, or managers using the agency's funds, by book entry, physical delivery, or by third-party custodial agreement. The transfer of securities to the counterparty bank's customer book entry account may be used for book entry delivery.
For purposes of this section, "counterparty" means the other party to the transaction.
A counterparty bank's trust department or separate safekeeping department may be used for the physical delivery of the security if the security is held in the name of the local agency. Where this section specifies a percentage limitation for a particular category of investment, that percentage is applicable only at the date of purchase.
Where this section does not specify a limitation on the term or remaining maturity at the time of the investment, no investment shall be made in any security, other than a security underlying a repurchase or reverse repurchase agreement or securities lending agreement authorized by this section, that at the time of the investment has a term remaining to maturity in excess of five years, unless the legislative body has granted express authority to make that investment either specifically or as a part of an investment program approved by the legislative body no less than three months prior to the investment:
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(a) Bonds issued by the local agency, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency or by a department, board, agency, or authority of the local agency. (b) United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest.
(c) Registered state warrants or treasury notes or bonds of this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the state or by a department, board, agency, or authority of the state.
(d) Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenueproducing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California. (e) Bonds, notes, warrants, or other evidences of indebtedness of a local agency within this state, including bonds payable solely out of the revenues from a revenueproducing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency. (f) Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States governmentsponsored enterprises. (g) Bankers' acceptances otherwise known as bills of exchange or time drafts that are drawn on and accepted by a commercial bank. Purchases of bankers' acceptances shall not exceed 180 days' maturity or 40 percent of the agency's moneys that may be invested pursuant to this section. However, no more than 30 percent of the agency's moneys may be invested in the bankers' acceptances of any one commercial bank pursuant to this section.
This subdivision does not preclude a municipal utility district from investing moneys in its treasury in a manner authorized by the Municipal Utility District Act (Division 6 (commencing with Section 11501) of the Public Utilities Code). (h) Commercial paper of "prime" quality of the highest ranking or of the highest letter and number rating as provided for by a nationally recognized statistical rating organization (NRSRO). The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or (2):
(1) The entity meets the following criteria:
(A) Is organized and operating in the United States as a general corporation. (B) Has total assets in excess of five hundred million dollars ($500,000,000). (C) Has debt other than commercial paper, if any, that is rated "A" or higher by an NRSRO.
(2) The entity meets the following criteria:
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(A) Is organized within the United States as a special purpose corporation, trust, or limited liability company.
(B) Has programwide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond. (C) Has commercial paper that is rated "A-1" or higher, or the equivalent, by an NRSRO.
Eligible commercial paper shall have a maximum maturity of 270 days or less. Local agencies, other than counties or a city and county, may invest no more than 25 percent of their moneys in eligible commercial paper. Local agencies, other than counties or a city and county, may purchase no more than 10 percent of the outstanding commercial paper of any single issuer. Counties or a city and county may invest in commercial paper pursuant to the concentration limits in subdivision (a) of Section 53635. (i) Negotiable certificates of deposit issued by a nationally or state-chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a federally licensed or state- licensed branch of a foreign bank. Purchases of negotiable certificates of deposit shall not exceed 30 percent of the agency's moneys that may be invested pursuant to this section. For purposes of this section, negotiable certificates of deposit do not come within Article 2 (commencing with Section 53630), except that the amount so invested shall be subject to the limitations of Section 53638. The legislative body of a local agency and the treasurer or other official of the local agency having legal custody of the moneys are prohibited from investing local agency funds, or funds in the custody of the local agency, in negotiable certificates of deposit issued by a state or federal credit union if a member of the legislative body of the local agency, or a person with investment decisionmaking authority in the administrative office manager's office, budget office, auditor-controller's office, or treasurer's office of the local agency also serves on the board of directors, or any committee appointed by the board of directors, or the credit committee or the supervisory committee of the state or federal credit union issuing the negotiable certificates of deposit.
(j) (1) Investments in repurchase agreements or reverse repurchase agreements or securities lending agreements of securities authorized by this section, as long as the agreements are subject to this subdivision, including the delivery requirements specified in this section.
(2) Investments in repurchase agreements may be made, on an investment authorized in this section, when the term of the agreement does not exceed one year.
The market value of securities that underlie a repurchase agreement shall be valued at 102 percent or greater of the funds borrowed against those securities and the value shall be adjusted no less than quarterly. Since the market value of the underlying securities is subject to daily market fluctuations, the investments in repurchase agreements shall be in compliance if the value of the underlying securities is brought back up to 102 percent no later than the next business day. (3) Reverse repurchase agreements or securities lending agreements may be utilized only when all of the following conditions are met:
(A) The security to be sold using a reverse repurchase agreement or securities lending agreement has been owned and fully paid for by the local agency for a minimum of 30 days prior to sale.
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(B) The total of all reverse repurchase agreements and securities lending agreements on investments owned by the local agency does not exceed 20 percent of the base value of the portfolio.
(C) The agreement does not exceed a term of 92 days, unless the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security. (D) Funds obtained or funds within the pool of an equivalent amount to that obtained from selling a security to a counterparty using a reverse repurchase agreement or securities lending agreement shall not be used to purchase another security with a maturity longer than 92 days from the initial settlement date of the reverse repurchase agreement or securities lending agreement, unless the reverse repurchase agreement or securities lending agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security.
(4) (A) Investments in reverse repurchase agreements, securities lending agreements, or similar investments in which the local agency sells securities prior to purchase with a simultaneous agreement to repurchase the security may be made only upon prior approval of the governing body of the local agency and shall be made only with primary dealers of the Federal Reserve Bank of New York or with a nationally or state-chartered bank that has or has had a significant banking relationship with a local agency.
(B) For purposes of this chapter, "significant banking relationship" means any of the following activities of a bank:
(i) Involvement in the creation, sale, purchase, or retirement of a local agency's bonds, warrants, notes, or other evidence of indebtedness. (ii) Financing of a local agency's activities.
(iii) eptance of a local agency's securities or funds as deposits. (5) (A) "Repurchase agreement" means a purchase of securities by the local agency pursuant to an agreement by which the counterparty seller will repurchase the securities on or before a specified date and for a specified amount and the counterparty will deliver the underlying securities to the local agency by book entry, physical delivery, or by third-party custodial agreement. The transfer of underlying securities to the counterparty bank's customer book-entry account may be used for book-entry delivery. (B) "Securities," for purposes of repurchase under this subdivision, means securities of the same issuer, description, issue date, and maturity. (C) "Reverse repurchase agreement" means a sale of securities by the local agency pursuant to an agreement by which the local agency will repurchase the securities on or before a specified date and includes other comparable agreements. (D) ) "Securities lending agreement" means an agreement under which a local agency agrees to transfer securities to a borrower who, in turn, agrees to provide collateral to the local agency. During the term of the agreement, both the securities and the collateral are held by a third party. At the conclusion of the agreement, the securities are transferred back to the local agency in return for the collateral. (E) For purposes of this section, the base value of the local agency's pool portfolio shall be that dollar amount obtained by totaling all cash balances placed in the pool by all pool participants, excluding any amounts obtained through selling securities by way
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of reverse repurchase agreements, securities lending agreements, or other similar borrowing methods.
(F) For purposes of this section, the spread is the difference between the cost of funds obtained using the reverse repurchase agreement and the earnings obtained on the reinvestment of the funds.
(k) Medium-term notes, defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Notes eligible for investment under this subdivision shall be rated "A" or better by an NRSRO. Purchases of medium-term notes shall not include other instruments authorized by this section and shall not exceed 30 percent of the agency's moneys that may be invested pursuant to this section.
(l) (1) Shares of beneficial interest issued by diversified management companies that invest in the securities and obligations as authorized by subdivisions (a) to (k), inclusive, and subdivisions
(m) to (q), inclusive, and that comply with the investment restrictions of this article and Article 2 (commencing with Section 53630). However, notwithstanding these restrictions, a counterparty to a reverse repurchase agreement or securities lending agreement is not required to be a primary dealer of the Federal Reserve Bank of New York if the company's board of directors finds that the counterparty presents a minimal risk of default, and the value of the securities underlying a repurchase agreement or securities lending agreement may be 100 percent of the sales price if the securities are marked to market daily.
(2) Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.). (3) If investment is in shares issued pursuant to paragraph (1), the company shall have met either of the following criteria:
(A) Attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs.
(B) Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations authorized by subdivisions (a) to (k), inclusive, and subdivisions (m) to (q), inclusive, and with assets under management in excess of five hundred million dollars ($500,000,000).
(4) If investment is in shares issued pursuant to paragraph (2), the company shall have met either of the following criteria:
(A) Attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs.
(B) Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience managing money market mutual funds with assets under management in excess of five hundred million dollars ($500,000,000).
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(5) The purchase price of shares of beneficial interest purchased pursuant to this subdivision shall not include commission that the companies may charge and shall not exceed 20 percent of the agency's moneys that may be invested pursuant to this section. However, no more than 10 percent of the agency's funds may be invested in shares of beneficial interest of any one mutual fund pursuant to paragraph (1).
(m) Moneys held by a trustee or fiscal agent and pledged to the payment or security of bonds or other indebtedness, or obligations under a lease, installment sale, or other agreement of a local agency, or certificates of participation in those bonds, indebtedness, or lease installment sale, or other agreements, may be invested in accordance with the statutory provisions governing the issuance of those bonds, indebtedness, or lease installment sale, or other agreement, or to the extent not inconsistent therewith or if there are no specific statutory provisions, in accordance with the ordinance, resolution, indenture, or agreement of the local agency providing for the issuance.
(n) Notes, bonds, or other obligations that are at all times secured by a valid first priority security interest in securities of the types listed by Section 53651 as eligible securities for the purpose of securing local agency deposits having a market value at least equal to that required by Section 53652 for the purpose of securing local agency deposits. The securities serving as collateral shall be placed by delivery or book entry into the custody of a trust company or the trust department of a bank that is not affiliated with the issuer of the secured obligation, and the security interest shall be perfected in accordance with the requirements of the Uniform Commercial Code or federal regulations applicable to the types of securities in which the security interest is granted.
(o) A mortgage passthrough security, collateralized mortgage obligation, mortgagebacked or other pay-through bond, equipment lease-backed certificate, consumer receivable passthrough certificate, or consumer receivable-backed bond of a maximum of five years' maturity. Securities eligible for investment under this subdivision shall be issued by an issuer having an "A" or higher rating for the issuer's debt as provided by an NRSRO and rated in a rating category of "AA" or its equivalent or better by an NRSRO.
Purchase of securities authorized by this subdivision shall not exceed 20 percent of the agency's surplus moneys that may be invested pursuant to this section. (p) Shares of beneficial interest issued by a joint powers authority organized pursuant to Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (q), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria:
(1) The adviser is registered or exempt from registration with the Securities and Exchange Commission.
(2) The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q), inclusive. (3) The adviser has assets under management in excess of five hundred million dollars ($500,000,000).
(q) United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and
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Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated "AA" or better by an NRSRO and shall not exceed 30 percent of the agency's moneys that may be invested pursuant to this section.
The authority of a local agency to invest funds pursuant to Section 53601 includes, in addition thereto, authority to invest in financial futures or financial option contracts in any of the investment categories enumerated in that section. used in this article, "corporation" includes a limited liability company.
The purchase by a local agency of any investment authorized pursuant to Section 53601 or 53601.1, not purchased directly from the issuer, shall be purchased either from an institution licensed by the state as a broker-dealer, as defined in Section 25004 of the Corporations Code, or from a member of a federally regulated securities exchange, from a national or state-chartered bank, from a savings association or federal association (as defined by Section 5102 of the Financial Code) or from a brokerage firm designated as a primary government dealer by the Federal Reserve bank.
(a) A local agency shall not invest any funds pursuant to this article or pursuant to Article 2 (commencing with Section 53630) in inverse floaters, range notes, or mortgagederived, interest-only strips. (b) A local agency shall not invest any funds pursuant to this article or pursuant to Article 2 (commencing with Section 53630) in any security that could result in zero interest accrual if held to maturity. However, a local agency may hold prohibited instruments until their maturity dates. The limitation in this subdivision shall not apply to local agency investments in shares of beneficial interest issued by diversified management companies registered under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.) that are authorized for investment pursuant to subdivision (l) of Section 53601.
Notwithstanding Section 53601 or any other provision of this code, a local agency that has the authority under law to invest funds, at its discretion, may invest a portion of its surplus funds in deposits at a commercial bank, savings bank, savings and loan association, or credit union that uses a private sector entity that assists in the placement of deposits. The following conditions shall apply:
(a) The local agency shall choose a nationally or state chartered commercial bank, savings bank, savings and loan association, or credit union in this state to invest the funds, which shall be known as the "selected" depository institution. (b) The selected depository institution may use a private sector entity to help place local agency deposits with one or more commercial banks, savings banks, savings and loan associations, or credit unions that are located in the United States and are within the network used by the private sector entity for this purpose. (c) Any private sector entity used by a selected depository institution to help place its local agency deposits shall maintain policies and procedures requiring both of the following:
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(1) The full amount of each deposit placed pursuant to subdivision (b) and the interest that may accrue on each such deposit shall at all times be insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration. (2) Every depository institution where funds are placed shall be capitalized at a level that is sufficient, and be otherwise eligible, to receive such deposits pursuant to regulations of the Federal Deposit Insurance Corporation or the National Credit Union Administration, as applicable.
(d) The selected depository institution shall serve as a custodian for each such deposit.
(e) On the same date that the local agency's funds are placed pursuant to subdivision (b) by the private sector entity, the selected depository institution shall receive an amount of insured deposits from other financial institutions that, in total, are equal to, or greater than, the full amount of the principal that the local agency initially deposited through the selected depository institution pursuant to subdivision (b). (f) Notwithstanding subdivisions (a) to (e), inclusive, a credit union shall not act as a selected depository institution under this section or Section 53635.8 unless both of the following conditions are satisfied:
(1) The credit union offers federal depository insurance through the National Credit Union Administration.
(2) The credit union is in possession of written guidance or other written communication from the National Credit Union Administration authorizing participation of federally insured credit unions in one or more deposit placement services and affirming that the moneys held by those credit unions while participating in a deposit placement service will at all times be insured by the federal government. (g) It is the intent of the Legislature that this section shall not restrict competition among private sector entities that provide placement services pursuant to this section. (h) The deposits placed pursuant to this section and Section shall not, in total, exceed 30 percent of the agency's funds that may be invested for this purpose.
(i) This section shall remain in effect only until January 1, 2021, and as of that date is repealed.
Notwithstanding Section 53601 or any other provision of this code, a local agency that has the authority under law to invest funds may, at its discretion, invest a portion of its surplus funds in certificates of deposit at a commercial bank, savings bank, savings and loan association, or credit union that uses a private sector entity that assists in the placement of certificates of deposit, provided that the purchases of certificates of deposit pursuant to this section, Section 53635.8, and subdivision (i) of Section 53601 do not, in total, exceed 30 percent of the agency's funds that may be invested for this purpose. The following conditions shall apply:
(a) The local agency shall choose a nationally or state-chartered commercial bank, savings bank, savings and loan association, or credit union in this state to invest the funds, which shall be known as the "selected" depository institution. (b) The selected depository institution may submit the funds to a private sector entity that assists in the placement of certificates of deposit with one or more commercial banks, savings banks, savings and loan associations, or credit unions that are located in the United States for the local agency's account.
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(c) The full amount of the principal and the interest that may be accrued during the maximum term of each certificate of deposit shall at all times be insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration. (d) The selected depository institution shall serve as a custodian for each certificate of deposit that is issued with the placement service for the local agency's account. (e) At the same time the local agency's funds are deposited and the certificates of deposit are issued, the selected depository institution shall receive an amount of deposits from other commercial banks, savings banks, savings and loan associations, or credit unions that, in total, are equal to, or greater than, the full amount of the principal that the local agency initially deposited through the selected depository institution for investment.
(f) Notwithstanding subdivisions (a) to (e), inclusive, no credit union may act as a selected depository institution under this section or Section 53635.8 unless both of the following conditions are satisfied:
(1) The credit union offers federal depository insurance through the National Credit Union Administration.
(2) The credit union is in possession of written guidance or other written communication from the National Credit Union Administration authorizing participation of federally insured credit unions in one or more certificate of deposit placement services and affirming that the moneys held by those credit unions while participating in a deposit placement service will at all times be insured by the federal government. (g) It is the intent of the Legislature that this section shall not restrict competition among private sector entities that provide placement services pursuant to this section. (h) This section shall become operative on January 1, 2021. 53602. The legislative body shall invest only in notes, bonds, bills, certificates of indebtedness, warrants, or registered warrants which are legal investments for savings banks in the State, provided, that the board of supervisors of a county may, by a fourfifths vote thereof, invest in notes, warrants or other evidences of indebtedness of public districts wholly or partly within the county, whether or not such notes, warrants, or other evidences of indebtedness are legal investments for savings banks. 53603. The legislative body may make the investment by direct purchase of any issue of eligible securities at their original sale or after they have been issued. 53604. The legislative body may sell, or exchange for other eligible securities, and reinvest the proceeds of, the securities purchased.
53605. From time to time, the legislative body shall sell the securities so that the proceeds may be applied to the purposes for which the original purchase money was placed in the sinking fund or the treasury of the local agency. 53606. The bonds purchased, which were issued by the purchaser, may be canceled either in satisfaction or sinking fund obligations or otherwise. When canceled, they are no longer outstanding, unless in its discretion, the legislative body holds then uncanceled. While held uncanceled, the bonds may be resold.
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53607. The authority of the legislative body to invest or to reinvest funds of a local agency, or to sell or exchange securities so purchased, may be delegated for a oneyear period by the legislative body to the treasurer of the local agency, who shall thereafter assume full responsibility for those transactions until the delegation of authority is revoked or expires, and shall make a monthly report of those transactions to the legislative body. Subject to review, the legislative body may renew the delegation of authority pursuant to this section each year.
53608. The legislative body of a local agency may deposit for safekeeping with a federal or state association (as defined by Section 5102 of the Financial Code), a trust company or a state or national bank located within this state or with the Federal Reserve Bank of San Francisco or any branch thereof within this state, or with any Federal Reserve bank or with any state or national bank located in any city designated as a reserve city by the Board of Governors of the Federal Reserve System, the bonds, notes, bills, debentures, obligations, certificates of indebtedness, warrants, or other evidences of indebtedness in which the money of the local agency is invested pursuant to this article or pursuant to other legislative authority. The local agency shall take from such financial institution a receipt for securities so deposited. The authority of the legislative body to deposit for safekeeping may be delegated by the legislative body to the treasurer of the local agency; the treasurer shall not be responsible for securities delivered to and receipted for by a financial institution until they are withdrawn from the financial institution by the treasurer.
53609. Notwithstanding the provisions of this chapter or any other provisions of this code, funds held by a local agency pursuant to a written agreement between the agency and employees of the agency to defer a portion of the compensation otherwise receivable by the agency's employees and pursuant to a plan for such deferral as adopted by the governing body of the agency, may be invested in the types of investments set forth in Sections 53601 and 53602 of this code, and may additionally be invested in corporate stocks, bonds, and securities, mutual funds, savings and loan accounts, credit union accounts, life insurance policies, annuities, mortgages, deeds of trust, or other security interests in real or personal property. Nothing herein shall be construed to permit any type of investment prohibited by the Constitution.
Deferred compensation funds are public pension or retirement funds for the purposes of Section 17 of Article XVI of the Constitution.
53610. (a) For purposes of this section, "Proposition 1A receivable" means the right to payment of moneys due or to become due to a local agency, pursuant to clause (iii) of subparagraph (B) of paragraph
(1) of subdivision (a) of Section 25.5 of Article XIII of the California Constitution and Section 100.06 of the Revenue and Taxation Code.
(b) Notwithstanding any other law, a local agency may purchase, with its revenue, Proposition 1A receivables sold pursuant to Section
53999.
(c) A purchaser of Proposition 1A receivables pursuant to this section shall not offer them for sale pursuant to Section 6588.
53630. As used in this article: